What is the Worst Age to File Bankruptcy?
When it comes to paying debts by a reasonable time, often bankruptcy is the last resort for many as it relieves them of the burden of the debts that are too much to be paid in a reasonable amount of time. And the consequences of bankruptcy can have certain effects on you given the age of yours you are filing bankruptcy in. As such, there is no bar for age. But when you are filing bankruptcy, it surely has some impact on your financial situation. And that can be related to how old you are. So, if you want to know what the worst age is to file for bankruptcy, then you need to talk to an experienced Pittsburgh bankruptcy lawyer.Considerations Before Bankruptcy Filing
Precisely, the worst age of filing bankruptcy will be the age when the debtor and his finances will be hit very hard due to it. While filing bankruptcy, the debtor should consider if this is the ideal solution for wiping out the debt as often many debts are not erased with the process. Also, they need to think of whether they want to delay the purchase of a house or a car. Bankruptcy will leave a negative effect on your credit score in a temporary way. So, ensure that this burden is worth the debt you want to erase.Bankruptcy and Credit Reports
The bankruptcy will cause your credit score to go down and will remain in the record for the next 10 years depending on what type of bankruptcy you are filing for. Now, with this, even when the bankruptcy has been discharged, you might be charged higher interest rates for loans or loans will be denied to you which can be crucial for buying a home or a car. Consider this depending on how much time you feel you have in hand. A Pittsburgh bankruptcy lawyer can help you.The Debts Erased in Bankruptcy
The type of debts you have should be the determining factor of whether bankruptcy will be the ideal solution or not. There are only a few types of debts that can be erased by bankruptcy. If you are certain that you want that, then go for this. Otherwise, change your spending habit and take care of your debts on time. The debts that can be erased include:
- Credit card debt
- Medical bills
- Car and home lease obligations
- Personal loans
- Utility bills
- Lawsuit judgments
The debts that will remain in the record can include:
- Public and private loans
- Income tax
- Child support and alimony
- Court fines, penalties, and payments for injury due to DUI
- Student loan
As it has already been said, bankruptcy remains on the record for up to ten years. Hence, when you are looking for a new job or a new home, the landlord or the employer might conduct a background check. And this can lead to the discovery of your bankruptcy which can be the reason for rejection of your application.Bankruptcy Cost in Time and Money
The worst age of filing bankruptcy is when you cannot afford it in terms of time and money. You will have to pay the lawyers, for financial counseling classes and the bankruptcy process. Also, this is a time-consuming job.
For more details, come and talk to our Pittsburgh bankruptcy lawyer at Pittsburgh Bankruptcy Law Group.