Interviewer: We’ll be talking about bankruptcy today. First of all, it seems as if people tend to file bankruptcy as an absolute last resort, so they seem to delay the inevitable as long as possible and wait a very long time to do it. Can you talk about what reasons you have heard from your clients as to why they took so long to file in the first place?
Court: What usually happens is that people go through a financial hardship for a really long time. They will endure getting calls from creditors and debt collectors, receiving letters in the mail and getting sued for collections in small claims courts.
It Is Not Uncommon Endure Harassment from Debt Collectors for Months or Years before Consulting a Bankruptcy Attorney
They’ll go along with it and they’ll just bear the stress of it all for months and months, until something comes up that will force them to consider talking to somebody like me, a bankruptcy attorney.
Delays in Filing for bankruptcy Can Result in Wage Garnishments and Small Claims Court Cases
Typically, a wage garnishment will be instituted or a medical bill will be past due and that will be the straw that broke the camel’s back, at that point, they can’t keep up. They’re forced to either file bankruptcy or lose their car or lose part of their income.
They’re literally forced into filing bankruptcy. Really, it is best if, once you start having trouble you come and talk to a bankruptcy attorney. It’s really advantageous and you don’t have to go through all that harassment and suffer for so long. But people do. It’s probably the most common occurrence that I see.
Interviewer: You’re saying there’s some edge of a cliff they see they’re heading towards, such as the car is about to be repossessed, or they wake up and their bank account is zero, it’s an emergency situation that finally pushes them to talk to you about bankruptcy?
Court: Yes, that is absolutely correct.