Michael D. Hart, P.C.

Helping You Move Forward Free Of Financial Problems
  
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Yes, a bankruptcy could help you in your 20s

| Nov 20, 2020 | Chapter 7 Bankruptcy |

As a young adult, you knew that you made mistakes. You often used credit when you ran low on funds, and though you were able to repay what you owed in the past, that’s not the case now. You’re still only in your 20s, but struggling with your finances is a stressor that you didn’t expect at this age. You work 40 hours a week in a job you love, but the reality is that your bills are just too much.

The good news is that you do have options. There are options such as consolidating your debts or seeking to pay a lump-sum settlement to have a debt reduced and eliminated. There is also an opportunity to file for Chapter 7 or 13 bankruptcy.

I’ve heard that bankruptcy isn’t good for young people, so will it hurt me?

Younger people are often told not to pursue bankruptcy even though it may be beneficial for them. Bankruptcy is appropriate at any age if it has more benefits that downsides in a situation. For example, if your bankruptcy will wipe out all of your debt and mean that you can start saving money and moving forward in your life, then it may be a good idea. On the other hand, filing bankruptcy when you have student loans or tax debts may not help in the way you’d expect.

It’s a good idea to talk to an attorney about your options if you’re young and dealing with mounting debts. There are likely several different options that your attorney can talk to you about, so you can find one that works for you.