This year has been especially challenging if you are in your 20’s. Aside from the restrictions on your social life, you may have needed to rely on your savings to survive. If you have only been working for a few years, you may not have had sufficient money put aside. You may have turned to your credit cards or taken out loans to get by. Now you may be unable to pay your debts and wonder whether bankruptcy is the answer.
Is there a minimum age to file for bankruptcy?
You can apply for Chapter 7 or Chapter 13 bankruptcy as long as you are 18 years or older.
What are the disadvantages of filing for bankruptcy when young?
Bankruptcy will stay on your credit report for up to 10 years. It will make it harder to apply for credit in the future or take out credit cards. If a lender gives you credit, they may charge you a higher interest rate, which is especially important if you wish to buy a home. While many people fear that bankruptcy could make an employer hesitant to hire them, bankruptcy is often seen as accepting responsibility for your financial problems and handling them head-on, which is a sign of maturity.
What are the advantages of filing for bankruptcy when young?
If you need to declare bankruptcy, the chances are you will not be able to put down a deposit on a house any time soon. By filing now, you give your credit score time to recover before you need to take out a mortgage. Admitting you cannot pay your debts sooner rather than later allows you to make a fresh start while still young. It enables you to learn from your experience and build a brighter future rather than remaining trapped in debt for years to come.