Often clients have struggled to pay their debts for a year or more before finally filing for bankruptcy protection. The stigma of bankruptcy and the hope of getting their finances straight just around the corner keep them from filing. But there is a cost to the waiting and it can be very expensive. Some of the actions taken that can end up being expensive are:

1. Taking money from retirement accounts, that would have been protected in a bankruptcy, to pay unsecured debts, that would have been discharged;
2. Borrowing money on credit card cash advances or pay day loans, either of which might not be dischargeable;
3. Selling real estate or other assets at reduced dollar values and facing tough questions from a trustee about the proceeds of these sales;
4. Borrowing money from family or friends and possibly facing tough questions about preferential payments if you do repay them;
5. Taking money from bank accounts or other savings/investments to pay dischargeable debts;
6. Having your wages and/or bank accounts attached as the result of law suits filed against you; and
7. Being hounded by creditors with endless collection calls and letters;

The actual cost of the above actions is bad enough in and of itself. Most of these actions will further deplete your ability to meet current and future debts. There also is the additional human costs in your physical and mental health that can result from the stress of the situation and the self isolation from friends and family due to either embarrassment or lack of money to engage. The message to be learned is to do what is reasonably possible without sacrificing assets unnecessarily.

Ronald R. Stanley, Esq. has assisted individuals file Chapter 7 and 13 Bankruptcy for over 40 years. He is a member of the bar in Ohio (1974), Northern Ohio Federal District Court (1974) and 6^th Circuit Federal Appeals Court (1977). 3637 Medina Road #5 in Medina, Ohio 44256, 330-952-1415 Phone, [email protected] email, rstanleylaw.com website