Why So Many People Refuse to Consider Bankruptcy (Even When They Should)

Hello, I’m Emil Fleysher, a Florida bankruptcy lawyer and the owner of Fleysher Law, PA. I’m licensed in Florida and Texas and have been practicing exclusively in bankruptcy law for over 15 years. Over the years, I’ve spoken with thousands of people drowning in debt who were still hesitant to explore bankruptcy as a solution. Why? Because there’s a lot of misinformation, stigma, and pressure from powerful financial industries that benefit from keeping people trapped in debt.

Let’s break down why so many people delay calling a bankruptcy attorney, even when they’re struggling with unmanageable debt—and why taking action sooner rather than later is often the smartest financial decision.

1. The Social Stigma of Bankruptcy

For many, bankruptcy feels like a failure. There’s a common (and completely false) belief that filing for bankruptcy means you were irresponsible with money. But that couldn’t be further from the truth. Most people who file for bankruptcy do so because of circumstances beyond their control—job loss, medical bills, divorce, or unexpected expenses that overwhelmed them.

The reality? Bankruptcy is a legal tool designed to give honest people a fresh start. It’s a responsible financial decision that can help you reset and rebuild. Some of the most successful people in history—business owners, celebrities, even former U.S. presidents—have used bankruptcy to recover and thrive.

2. Misinformation from Banks and Creditors

If you’re struggling with debt, chances are you’ve received “helpful” offers from your credit card companies, mortgage lenders, or banks. They’ll suggest forbearance, payment plans, or balance transfers, all while making it seem like bankruptcy is the worst possible option. Why? Because they make more money when you stay in debt.

Financial institutions and credit card companies spend millions on marketing and lobbying efforts to discourage bankruptcy. They’d rather keep you paying interest indefinitely than let you discharge your debts and get a fresh start. If bankruptcy was truly so bad for consumers, why do banks and major corporations use it all the time to restructure their own debts?

3. The Debt Consolidation and Credit Counseling Industry

Another major source of misinformation comes from the debt consolidation and credit counseling industries. These companies promise to negotiate your debts and lower your payments, often claiming they can help you avoid bankruptcy.

What they don’t tell you:

• Many of these programs have high fees and do little to reduce your total debt.
• Creditors are not obligated to work with them, and you could still end up being sued.
• Some people end up in worse financial shape after spending years trying to pay off debts that could have been discharged in bankruptcy.

Bankruptcy is often a faster, more effective solution that provides true debt relief, rather than just shifting money around while you struggle to keep up.

4. Fear of Losing Assets or Ruining Credit

Many people believe that filing for bankruptcy means they’ll lose everything. The truth? Bankruptcy laws are designed to protect essential assets. In Florida, for example, your home, retirement accounts, and even your car (up to a certain value) may be completely exempt from creditors.

And as for your credit score—yes, bankruptcy will impact your credit. But if you’re already behind on payments, your score has likely taken a hit already. The good news? Bankruptcy actually allows you to start rebuilding your credit immediately, and many filers see their credit scores improve within a year or two.

Set Up a Free Consultation With Our Florida Bankruptcy Attorney Today

If you’re struggling with debt, ignoring the problem won’t make it go away. The longer you wait, the harder it can be to protect your assets and get the best outcome possible.

At Fleysher Law, PA, I’ve helped thousands of hardworking people take back control of their financial lives. Bankruptcy isn’t the end—it’s a new beginning. If you’re feeling overwhelmed by debt, let’s talk about your options.
Call me today for a free consultation, and let’s find the best path forward together.