You are able to go into bankruptcy at any age, but if you plan to do so in your 20s, it can be more difficult than if you’re older. Why? You can only start to get credit once you turn 18, so going into bankruptcy that young may be a red flag to the court that you spent with an intention to go into bankruptcy (this is fraud).
However, there are times when people do go into bankruptcy at a younger age and need to do so to help their finances. If you are in legitimate need, then you should consider bankruptcy.
When should you consider bankruptcy at a young age?
You may want to consider bankruptcy if:
- You primarily have unsecured debts
- You have no job or no ability to pay back what you owe
- You work but still cannot afford the necessities
- You have missed payments and are facing vehicle repossessions or foreclosure
- You have suffered a serious injury that has negatively impacted your finances
Any of these issues could lead to a situation where you need to go into bankruptcy. Keep in mind that there may be other options, such as consolidating your debt, negotiating with lenders and others. It’s worth talking through the legal options you have to determine if there is a solution other than bankruptcy that could help you get back on track.
Bankruptcy in the 20s isn’t right for everyone, but if you’re struggling, it could be a good solution for you. Our website has more information on bankruptcy and what to do if you’re having trouble dealing with your debts.
