One common misunderstanding is that most of the individuals who file for bankruptcy are people of a particular age who have been financially irresponsible for a period of time. For example: people who misuse credit cards or people who buy luxury items such as expensive homes, cars or other items that they can’t afford. While it is true that there are people that file for bankruptcy as a result of being financially irresponsible, there are many younger and older people who file for many other reasons. For example, student debt could cause a young person to struggle financially if they can’t find a job or wages to pay back their loan.
You still have to fulfill certain requirements and obligations for you to file for bankruptcy even if you are 18 years old or older. For example, for you to be able to file for a Chapter 7 bankruptcy, you must have little to no disposable income. If you still have substantial disposable income after expenses, then you may only qualify for a Chapter 13 bankruptcy not a Chapter 7. Sometimes the best option is to negotiate your debt down with your creditors instead of filing for bankruptcy.
A number of people wait too long before filing for bankruptcy which only gives creditors enough time to seize their assets or garnish their wages. You can stop your creditor’s collection efforts by filing for bankruptcy. Another mistake is not listing all creditors when filing for bankruptcy. You need to list all creditors including family members you owe money. Do not risk your future by paying your debts using your 401k plans and funds from the IRA to pay creditors.
Our Kansas City bankruptcy lawyer and law firm want you to succeed after filing for bankruptcy and we'll do everything in our power to make that happen. Give us a call at 816-842-6200 to speak with an attorney about your financial situation, or contact us online to schedule your free consultation.