What Every Millennial Should Know About Bankruptcy

October 31, 2018

No one likes to think they could go bankrupt. The thought of giving up is usually very hard for people. But in today’s difficult economy, many families and individuals are forced to consider the worst case scenarios, especially after life-changing events. For the younger members of our community – often called millennials – it can be daunting to consider something like bankruptcy.  Despite much of the bad publicity they get, the millennial generation is notably one that takes great pride in entrepreneurship and taking ownership of projects. Bankruptcy is, at its core, a process that takes control away from the debtor and gives it to a judge.

So, if you are under the age of 40 and facing a potential financial disaster, the attorneys of David Aylor Law Offices want to help. Here are a few things you should understand about bankruptcy.

 

It’s Not Forever

To a 21- or 22-year-old, 10 years can sound like a lifetime, but the fact is that your credit will recover, and you will be able to get on with your life. If you are suffering and struggling, sometimes bankruptcy (in particular a Chapter 7) can help you get the clean slate you need to start over. This is often well worth the temporary unpleasantness and stigma of bankruptcy.

 

You Are Not Alone

From 2005 to 2017, there were about 12.8 million consumer bankruptcies filed in U.S. federal courts. That is a very large number of people who share your struggle. Never think that this is something you are suffering alone or that you must go through it alone.

 

Use Chapter 7 If You Can

If you are young and do not own substantial assets, you should definitely consider Chapter 7 bankruptcy when possible. If you do not qualify due to income or other reasons, then Chapter 13 may be an option. But for younger debtors, Chapter 7 is the option that gives you a truly clean slate. Other forms of bankruptcy actually work to restructure your debt and spread your liabilities over a longer window of time.

 

Some Student Loans CAN Be Discharged

True, federally backed student loans, such as Plus Loans, are not dischargeable in bankruptcy. But private loans are, in most cases. Also, if you’ve suffered a catastrophic injury or are permanently disabled, you may qualify for a discharge of student loans under limited exceptions. The same is true of some seriously disabled veterans. Don’t assume what is dischargeable without first talking to a bankruptcy lawyer near you.

 

You Will Still Be Able to Finance Things After a Bankruptcy

While you should seriously take a moment to appraise your spending habits after a bankruptcy, the fact is you will still have a life after you file for bankruptcy. Things might get tough for a while, but don’t believe people who tell you that you’ll have to wait 10 years to buy a home or car. It’s not true. Yes, the bankruptcy will remain on your credit report for 10 years, but you would be surprised how in many cases, just a year or two after people are discharged in bankruptcy, they receive credit offers for high-interest credit cards or new cars. The key is not to start building debt again; the key is to obtain some small credit to begin building your score and showing that you’ve changed your habits. Responsible individuals are often able to rebuild very quickly after a bankruptcy.

 

Talk to a Bankruptcy Lawyer Now

Don’t continue to worry and stress out about your finances. If you are struggling and feel like you have no options, you owe it to yourself to talk to an attorney about your situation. Get answers. Find out what options you actually have. Call David Aylor Law Offices today.

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