The Ugly Truth About Filing for Bankruptcy Before Age 30
By now you have heard all the gloom and doom about how the current generation of young adults have had debt hanging over their heads since the minute they entered the workforce, if not earlier, and it will continue to follow them around for the rest of their lives, even if they live to an advanced age. Even the most pessimistic people will admit, though, that filing for bankruptcy is a remedy available to anyone. If you are old enough to have a bank account, you are old enough to file for bankruptcy. The bankruptcy filing fee is beyond the most cash-strapped people’s budgets, but you can apply for a fee waiver in a pinch. Why aren’t more people in their 20s filing for bankruptcy if their financial situation is as bad as they say it is. Is it because all those Tik Tok videos and YouTube shorts have deprived them of concentration to the point that they do not have the attention span to fill out bankruptcy forms? Perhaps they are wise to wait. Although you have a legal right to file for bankruptcy at any age, in practice, bankruptcy is more effective at discharging the debts that people tend to accumulate in middle age. To an optimist, this means that you are either eligible for significant debt relief through a bankruptcy filing or young enough that you still have your whole life ahead of you. To find out which one you are, contact a Jupiter chapter 7 bankruptcy lawyer.
You Can File for Bankruptcy at Any Age, but You Get More Bang for Your Buck If You Are in Your 30s or Older
Chapter 7 bankruptcy is great at discharging credit card debt, medical bills, and personal loans that you have no realistic hope of repaying. The court has the right to sell assets that belong to you to settle your debts, but the property that amounts to basic necessities is exempt, such as the house you live in and the car you drive. Most chapter 7 filers can complete their cases without liquidating any assets, even if they are homeowners. Chapter 13 bankruptcy is great if you have a substantial income from employment but are still overwhelmed with debt. You can file for chapter 13 even if you own assets; chapter 13 does not put them at risk of liquidation as long as you comply with the court-ordered repayment plan.
The debts that create the heaviest burden for young adults are the hardest to discharge. It is now possible to discharge some student loan debts, but only if they have followed you around for years. Becoming a parent at a young age is rewarding in the long-term, but the financial stress of providing for children on an entry-level income is undeniable, even if you have a full-time job and are blessed with nearby relatives who can provide free childcare. You can’t discharge child support debt in bankruptcy full stop.
Work With a Debt Lawyer About Addressing Your Debt Early in Life
A South Florida debt lawyer can help you address your debt before it gets bad. Contact Nowack & Olson, PLLC in Jupiter, Florida to discuss your case.
Source:
investopedia.com/financial-edge/1012/5-reasons-not-to-file-for-bankruptcy-in-your-20s.aspx
