The mystery isn’t why so many people file for bankruptcy each year. It’s why more people don’t.
Each year, only a fraction of the Americans who could benefit financially from bankruptcy actually seek relief. Economists say some don’t file because collectors aren’t aggressively pursuing them, while others may strategically delay filing because bankruptcy could benefit them more down the road.
Many bankruptcy attorneys have a much simpler explanation: Fear, a lack of information and misplaced optimism keep people from getting a fresh start. In my latest for the Associated press, why bankruptcy may be the best option for those struggling with debt.