When you are dealing with the overwhelming amount of debts and looking for a way out and stabilize your finances, there is hardly any other option left other than filing bankruptcy. Even though bankruptcy can bring some relief to you from the debt, it can also bring in some serious consequences for your finances. This will include the risks of lower credit scores and the record of bankruptcy in your credit record for up to 10 years. That is why it is necessary that you consider the right age for filing bankruptcy. There is certainly no legal prohibition but when you are filing for bankruptcy, make sure that you are talking to our experienced Pittsburgh bankruptcy lawyer to understand the consequences.When Should You File for Bankruptcy in Pennsylvania
The best age to file for bankruptcy depends on your financial situation and the goal that you want to achieve from the bankruptcy. It is better if you file for bankruptcy at a time when you will feel the fewer amount of consequences.
Before you file for bankruptcy, you need to consider certain factors for making sure that you are making the right decision.Erasing Your Debts
When as a debtor you are carrying the debts that are difficult to pay off given your financial situation and can be erased with bankruptcy, it is a great idea if you actually file for bankruptcy. If you are carrying only secured debts that cannot be erased, then go for other options than filing for bankruptcy.
The debts that you can erase with the help of bankruptcy will include:
- Credit card debt
- Medical bills
- Car and home lease obligations
- Personal loans
- Lawsuit judgments
- Utility bills
The debts that cannot be erased will include:
- Student loan
- Home and car loan
- Income tax
- Child and spousal support
- Court fines and penalties
- Personal injury debts
Often for most young people, the debt that young people face is the student loan. That cannot be erased. So, if you are too young, you might not file for bankruptcy.The Effect on Credit Score
When you are filing for bankruptcy, it will have its effects on your credit score. Your credit score will become low while it will also remain in your record for up to 10 years. During this time you might have to apply for a student loan, home mortgage, or car loan. And all of these can get rejected or you will have to pay higher interest for this. Consult our Pittsburgh bankruptcy lawyer for more information.Effect on Employment or Housing Opportunity
When you are filing for bankruptcy, there are no legal bindings that will stop any employer or landlord to offer you a job or accommodation. However, they will run a background check on you which will reveal the information regarding bankruptcy. It will depend on their discretion on how it will be with them.The Cost of Filing for Bankruptcy
There will be a cost of filing for bankruptcy. It will require you for paying for the court dates, credit counseling, fees for the Pittsburgh bankruptcy lawyer and so on. So, when you are filing for bankruptcy, make sure that you are in a position to pay for all of these.
For more information on bankruptcy and its consequences, come to us today at Pittsburgh Bankruptcy Law Group.