At what age should you file for bankruptcy? Is it too early to file when you are in your late teens or early twenties? Is it too late to file if you are retired? When you have been told all of your life to avoid bankruptcy, it might be difficult to judge the optimal time for you to file. We will attempt to address the best time to file to help you make the best decision.
If you are 22 and looking to file for bankruptcy, you may be asking yourself if it is too early in your financial life to file a bankruptcy. The early twenties is always a problematic age when it comes to credit and debt because banks start offering credit to you at 18 years of age. Credit card spending from college years piles up and may hamper your success after college. Filing bankruptcy at an early age such as 22 can have positive results. You will recover from the debt much faster than if you wait until later years, and the impact of a bankruptcy is much less at an early age rather than when you are older and running for political office or managing a business or buying a home. If you hold on to your debt when you are unable to pay for it, you will continually damage your credit until the debt is either brought to current and consistently kept current or until you pay off the debt completely.
If you are retired and considering bankruptcy, you may be asking similar questions. Are you too old to file and will your assets be at risk? Fortunately, after 65 years of age exemption limits go up meaning that you have more room to keep assets instead of having assets taken from you to pay your creditors. You can keep up to $175,000 in home equity if you are 65+ years of age. Even if you are 55 or older, you may be able to keep $175,000 of home equity if you make less than $35,000 of income with your spouse. There are many other areas in bankruptcy exemptions where the exemption limit is increased including retirement assets. So, check with your bankruptcy attorney to see what your options are in bankruptcy to cure your unwanted debts.
If you are considering bankruptcy, keep in mind that the sooner you get filed, the sooner you will be on the path to replenishing your credit potential.
Bankruptcy Law Professionals is a bankruptcy law firm located in Southern California servicing clients in San Bernardino County, Los Angeles County, Riverside County, and Orange County. Contact us to schedule an appointment by phone or in person at 855 257-7671.
