People from various walks of life decide to file for bankruptcy, from those who have a high-profile and well-paying job to those whose income leaves them below the middle class. Some people may think that bankruptcy is for middle-aged and older individuals, but there are times when a young person may decide to file for bankruptcy as well. For example, someone who is in their 20s may file for bankruptcy because they are struggling with debt, which takes on many forms beyond student loan debt. It is essential for those considering bankruptcy to cover all relevant legal matters, regardless of age. However, there are unique considerations that apply to some younger people.
On top of the high cost of college tuition, some young people find themselves buried in debt due to car loans, credit cards, and medical expenses they never saw coming. Sometimes, people may not realize the consequences of spending too much, such as someone who cannot pay off debt they incurred on vacation because they were unexpectedly fired. Moreover, some younger people have had difficulty saving money, for a multitude of reasons (less time in the workplace, the recession, etc.).’
If you are a young person or your child is considering bankruptcy as a young adult, you should carefully review all options and make sure you have settled on the most sensible solution. As with older ages, filing for bankruptcy can open up new opportunities and a sense of freedom in a young person’s life and our bankruptcy section has more on this topic.