When facing tough financial problems, you may wonder whether to file for bankruptcy. Whether you’re a college graduate with family obligations and heavy student loan debt, a middle-aged entrepreneur struggling with business expenses, or an older couple with high and unexpected medical bills, you are not alone. While considering the prospect of debt relief through the court system, the information below may help you regain financial freedom.  

Are There Age Requirements?

Bankruptcy law allows individuals who are 18 years and older to file bankruptcy petitions. Under certain circumstances, individuals under the age of 18 can file through guardians or legal representatives. The best time to file is dependent on your age, life circumstances, and goals. 

Does Filing Young Hurt or Help Me?

As a younger individual or couple filing for bankruptcy, you have the advantage of the time to regroup from negative effects such as a low credit score and possible property loss. Filing a Chapter 7 petition at age 25 gives you a quick fresh start, and the bankruptcy will age off your credit history ten years later. By that time, you might be ready to borrow money to buy a home or start a business. When filing under Chapter 13, the record comes off the credit history after seven years. 

If you’re an older filer with fewer assets, Chapter 7 might be the solution to get rid of burdensome medical bills and credit card debts. However, if you own real estate, filing under Chapter 13 can preserve a primary residence with high equity, a second home, or rental properties. Bankruptcy law protects retirement accounts such as an IRA and 401(k) as exempt assets under Chapters 7 and 13.

Regardless of age, William C. Rieth in Rochester, NY, helps clients decide whether to file for bankruptcy. This skilled attorney offers more than 25 years of experience helping individuals and married couples file Chapter 7 and 13 bankruptcy, and representing businesses filing under Chapter 11. Learn more about this knowledgeable and compassionate bankruptcy lawyer by visiting his website. Call (585) 232-6520 to schedule a free initial consultation.