Filing for Bankruptcy The Right Way
Although young males generally have less debt than older people and women, this trend is starting to shift. There were 110,000 under 25s declaring bankruptcy last year and millennial men are more likely to default on student debt than their female counterparts. This is a concern, since under 25s often don’t own a house or have any other assets to fall back on. One way to deal with mounting debt is to effectively file for bankruptcy; the keyword being “effectively”. Doing so properly will allow you the cheapest and quickest route to getting on the right track with your finances.
Be Transparent
The quickest way to extend your bankruptcy, make it more expensive and risk legal action being taken against you is withholding information. Your trustee is responsible for gathering all the information they can about your income, debts and assets. If information is missing or incorrect, then the process will be lengthened and you could face a fine or prison sentence.
There’s no need to worry, however. Simply go through your finances and provide the information as accurately as possible. You may think that concealing assets will mean they can’t be taken away and sold to pay for debts. This is a very common crime, though, and it’s not worth the risk.
Don’t Take Up More Debt
Before you declare that you are bankrupt, you may be tempted to max out your credit card or take out a new loan. What’s the harm, right? You’ll need to explore the legal details of bankruptcy in your state, but taking out new debts before you declare bankruptcy is usually a crime. You are taking this step in order to not have to pay off debts, so taking out a new loan immediately before will suggest bad intentions on your part. As stated above, you won’t be able to hide your financial history. Try to pay off your debt rather than adding to it for a comfortable and speedy recovery.
Making a Comeback
Talking of recovery, there’s no need to feel depressed about declaring bankruptcy. If you follow the process properly and fulfill your obligations, it offers the chance for you to have a fresh start. Feel good about learning this hard life lesson early on and rebuild your life based on this new found wisdom. Once you’ve been through the difficult and complicated process of bankruptcy you won’t want to go back there. This offers an opportunity to live within your means and live a financially secure life as you get older.
If you have found yourself in debt that you can’t afford to repay, then bankruptcy might be the answer. This is your chance to do something properly and get yourself out of a bad situation. Remember that you’re not alone. There are over 100,000 other people your age in the same situation. Finances are hard, especially when you’re young. Just be completely honest about your assets, debts and income and you can’t go wrong. Think of this as a chance to have a life lesson and fresh start for a brighter future.
