12/02/2025
Don’t put off what can be fixed now
Researchers have found that, on average, people wait 22 months after receiving their first 90-day past due notice before filing bankruptcy. What that means for most people, is that as they delay, they just dig themselves a deeper hole. Much of this debt can be what is termed “shadow debt” or debt that might not appear on your credit report. These could be things like late rent, unpaid utilities or medical bills. A recent study found that the cost of this delay is around $4,000 per month. In other words, people racked up an additional $4,000 in unsecured debt, on average, for every month they delayed filing.
While the research assigns a financial cost to delay, it is hard to put a price on the emotional price caused by this delay. Financial stress causes significant damage to a person’s mental health and relationships. Letting your poor financial condition linger for an additional, unnecessary 22 months, puts your and your family’s mental health at risk. When asked, most people who file for bankruptcy protection indicate that they wish they had started the process sooner.
