Overcoming Barriers To Your Bankruptcy FilingWhile bankruptcy filings are nearing the record 2 million of 2005, many debtors who need to file bankruptcy fail to do so for numerous reasons.  The problem is that whether these debtor file bankruptcy or not they will be forced to deal with their debt issues sooner or later.  The longer they wait, the more debt troubles they face according to many bankruptcy experts.  But what are the barriers standing between debtors and a necessary bankruptcy filing and how do they overcome them?

  1. Many debtors delay or forgo filing bankruptcy because a large percentage of their debts are nondischargeable debts such as student loans, child support, spousal support or priority tax debt. While there isn’t much that can be done to reduce or discharge child support or spousal support obligations, bankruptcy can discharge other unsecured debts freeing up more money for the debtor. Also, some taxes can be discharged in bankruptcy and student loans may be dischargeable if they cause a undue hardship on the debtor.  Speak with a bankruptcy attorney about how bankruptcy can help you before you forgo a bankruptcy filing because of these difficult or impossible to discharge debts.
  2. Some debtors are not filing bankruptcy because they feel that they won’t be able to save their home from foreclosure anyway because they lack enough income to pay their mortgage. While it is true that you still need to pay your mortgage during bankruptcy if you intend to keep your home, even if you plan to let it go into foreclosure, bankruptcy may still be beneficial because it forgives any attached mortgage balance once you surrender the home.
  3. Many debtors forgo filing bankruptcy because they do not have enough money to hire a lawyer and pay the filing fees. There are many ways to pay for your bankruptcy filing, speak with a bankruptcy attorney about payment plans and options.