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Why People Resist Bankruptcy

Sawin & Shea

Bankruptcy is a smart, legal, and effective way to wipe out a mountain of old debts. Yet, it still has a stigma that makes many people avoid it. There are many reasons why people resist bankruptcy, but some are based on fiction rather than facts. If you think bankruptcy is rare, think again. Fear of the Future.

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Why sudden job losses put people at risk of bankruptcy

Roths Child Law

Most people are rather flippant about the prospect of losing a job. Unfortunately, job loss is often a more serious issue than people realize. Not only will there be more competition for any nearby open positions, but businesses that are hiring may offer lower wages because they know people are desperate.

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Why do some people file for bankruptcy more than once?

Roths Child Law

Nobody wants to file for bankruptcy, but it happens – and some people have it happen more than once. Many people (even former Presidents) have filed multiple bankruptcies over their lifetimes. Why do people end up filing more than once? It’s not financial irresponsibility that puts most people in that position.

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3 common reasons people shy away from filing for bankruptcy

Roths Child Law

When debt becomes overwhelming and difficult to manage, filing for bankruptcy can provide a fresh start and relief from mounting financial burdens. However, despite its potential benefits, some people hesitate to consider bankruptcy a viable solution. This helps you understand the potential consequences and benefits.

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Unexpected medical costs can lead to a need for bankruptcy

Roths Child Law

Some people think of their health insurance as an assurance that they won’t ever have to face exorbitant medical care expenses. People who are facing healthcare costs that are so high they can’t conceivably pay their bills may realize they have to do something before they drown in debt. This includes those who have decent insurance.

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Fear of Bankruptcy Holds Too Many People Back

Nerd Wallet

The mystery isn’t why so many people file for bankruptcy each year. It’s why more people don’t. Each year, only a fraction of the Americans who could benefit financially from bankruptcy actually seek relief. The article Fear of Bankruptcy Holds Too Many People Back originally appeared on NerdWallet.

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Removing the stigma behind bankruptcy filings

Roths Child Law

When debts become overwhelming and impossible to pay, filing for bankruptcy is an option. However, many people are put off of doing so because of the stigma behind filing for bankruptcy. They may feel like other people will judge them for not being able to pay their bills.