Bankruptcy is seen as a fresh start for those seeking to regain control of their finances, but every situation is different. There are many reasons people seek bankruptcy and the need can arise at any age. Choosing to file for Chapter 7 bankruptcy at a young age can be a smart choice for many seeking refuge from credit card debt acquired while in college or as a young adult, but may not be the ideal solution for everyone.
People in their 20s and 30s undergo a lot of life changes. Graduating college, getting a job, getting married, buying a house and cars are exciting and expensive milestones achieved by many early in life. Some young adults are even starting businesses. These accomplishments coupled with student loans and the fact that many are still learning the basics of managing their money can lead to the accumulation of debt. Therefore, filing for bankruptcy can be the best option for those wanting to rid themselves of poor financial decisions; however, it is important to understand that bankruptcy does not eliminate all types of debt. Certain debts will not be discharged by the courts, these are important considerations to take into account before moving forward.
- Public and private student loans will not be erased by bankruptcy. While there are options for approaching student loan debt, bankruptcy likely is not one of them.
- Filing for bankruptcy will not release a parent/spouse of the duty to pay for child support or alimony.
- Debts to government agencies, such as the IRS, are also excluded from being discharged by bankruptcy.
Despite the above, debts such as those from credit cards, car loans, mortgages, lawsuit judgments, and personal loans can be wiped out by bankruptcy or at least made easier to pay over an extended period of time.
If you are considering filing for bankruptcy, contact the team at Kelley & Fulton, P.L. Our West Palm Beach bankruptcy attorneys offer clients years of experience in assisting with their cases. Schedule a free consultation with one of our bankruptcy attorneys today to explore your options.