When you look at your debts and compare them to what you earn, you may see a real discrepancy in what you can afford to pay. While the credit cards and loans you’re paying on might only ask for a few hundred in payments a month, those few hundred dollars may be more than you can handle when you look at your other necessities and expenses.
It’s not unusual for younger people to have tight budgets. With unpredictable fluctuations in income, too, such as changes in your shift or time off for falling ill, it’s typical to see people have months when they can’t pay all of what they owe or have to delay payments on their necessities.
If you’ve found yourself in this position and feel that you’ll never be able to dig out of the debt you’re in, it may be time to look into bankruptcy.
Am I too young to go into bankruptcy? Depending on your age, you may ask if you’re too young to go into bankruptcy. Whether you’re 18 or a retiree, the reality is that almost anyone can be in enough debt to need to use bankruptcy for a fresh start. You may have heavy credit card debt, medical debt from an accident and injury or other expenses that you did not expect. If you aren’t earning much or haven’t started working full-time yet, then you may be in a situation where bankruptcy could help you.
There are several kinds of bankruptcy available to the public. Depending on how much you earn, the one that may work best for you could be Chapter 7 or 13 bankruptcy. Both give you an opportunity to reduce what you owe. Chapter 7 bankruptcy liquidates certain assets (with exemptions), and then it eliminates remaining debts. Chapter 13 bankruptcy works more like a consolidation loan, letting you pay back what you can afford each month for a set length of time. No matter who you are, how old you are or the reason for your debt, it’s valuable to look into bankruptcy as a possible solution. It could give you the support you need to resolve your debt and move forward into a more financially stable future.