You Must Be This Many Years Old To File Bankruptcy
Age To File Bankruptcy
The reason why there has been a surge in bankruptcy filing by seniors is because of healthcare, scams targeted at the elderly, and the shrinking social safety net.
Filing Bankruptcy Young
Younger people also file for reasons such as student loan debt or because of the difficult job market. In fact, many graduate millennials have high student loan and credit debt that they have no hope of ever paying off. So filing for bankruptcy is not something to be ashamed of, because it could be the only way out of a difficult debt situation.
Qualification For Filing For Bankruptcy
Legal Age To File Bankruptcy
People 18 years of age and older are eligible to file for bankruptcy, and in some situations people under the age 18 can file for bankruptcy with a courts approval.
Other Bankruptcy Eligibility Requirements
However, there are other requirements that you must meet in order to file for bankruptcy apart from age. That means that in most cases it is up to the court system to determine whether or not you are qualified to file for bankruptcy. But this should not worry you that much because there is more than one type of bankruptcy.
All you need to do is consult an experienced bankruptcy attorney to review your case and recommend the appropriate bankruptcy option for you.
Deciding Whether To File For Bankruptcy
Even if you qualify to file for bankruptcy, does not mean that filing is the best option for you. You should know that filing for bankruptcy will make it harder for you to get a loan in the future. This included getting a car loan, mortgage and other types of loans that rely on your credit score will become harder.
But some may argue that if you are thinking of filing for bankruptcy, you credit score must be low already anyway. Again this is why you need an experienced bankruptcy attorney to look into your financial situation and offer advice. Generally filing for a bankruptcy can give you a chance for a fresh start. Filing while you are still young also gives you a lot of time to recover financially, and time for your credit score to rise.
Bankruptcy Mistakes To Avoid
There are a number of mistakes people make when they are unable to pay their debts and are experiencing serious money problems. The following are some of the bankruptcy mistakes you should avoid:
- Waiting too long to file for bankruptcy: This only gives creditors the opportunity to garnish your wages and seize your assets. Filing for bankruptcy can stop these actions by creditors.
- Getting a second mortgage: People sometimes get a second mortgage to pay off their debts, but this only puts them at risk of losing their homes if they do not make those mortgage payments.
- Not listing all creditors: If you are filing for bankruptcy, you should list all creditors. These should include potential creditors, family members you owe money, and even those you intend to pay.
- Using funds from IRA and 401K plans to pay creditors: You run the risk of depleting your IRA and 401K plans if you use them to pay creditors. This could leave you without any safety net for your retirement.