Am I Too Young To File Bankruptcy?

man in jean jacket holding empty wallet
College debts. Car payments. Rent. Utilities and grocery bills. Starting a family. Taking care of parents. It’s no wonder that many Millennial Americans are wondering: “Am I too young to file for bankruptcy?” When we consider that the average 24 to 40-year-old is facing a difficult job economy compared to the Baby Boomer generation, and a wage crisis that can’t keep up with the cost of living, we have good news for those considering bankruptcy: You are not too young to file for bankruptcy.

The Financial Dilemma Of Being A Millennial

For many Americans, there is a stigma attached to bankruptcy that keeps them from moving forward with their financial life. And while older generations may claim that a lack of responsibility and an addiction to avocado toast is keeping Millennials from reaching peak financial milestones, the reality cannot be further from the truth. In a 2020 article by Business Insider, the average Millennial, more specifically the recent college graduate, is in an uphill battle for their financial independence. Take a look at the financial crisis facing Millennials.
  • The average American Millennial makes $35,592 a year. After being adjusted for inflation, that salary is estimated to be 20% lower than the average salary for a Baby Boomer at the same age.
  • The net worth of an American between the ages of 18 to 35 has decreased by 34% since 1996, according to a Deloitte study reported by The Washington Post.
  • Millennials in the graduating class of 2018 have an average student-loan debt of $29,800.
  • While many Millennials are saving what they can to get ahead, those who have a savings account have less than $5,000 on average put away in case of emergency.
With the desire to save and be financially savvy, the reality is that just isn’t happening for many Millennials. Add the current global health pandemic, and the financial future for many is in limbo now more than ever. In fact, some studies suggest that the Millenial age group is the most likely to be filing for bankruptcy simply because they have an innate need to get ahead of the problem before it follows them into later adulthood and their retirement years. Considering the needs of becoming financially stable has also made many Millennial couples put having children on hold, pause home buying and renovations, as they simply fight to get food on the table and gas in their cars to get to and from work. But the stigma surrounding bankruptcy seems to be minimal for this group of individuals as they know that the decreased credit score will not follow them forever.

I’m a Millennial. I have a ton of debt and can’t get ahead. Should I file for bankruptcy?

If you are a member of the Millennial generation, you should be relieved to know that you are not alone in considering filing for bankruptcy. In fact, for many, it’s becoming more of a necessity as they realize the college debts they’ve accumulated, combined with the cost of living and historically low wages that will make it nearly impossible for them to get out of debt. Thankfully, if you are 18 years of age or older, you can legally file for bankruptcy. However, the question becomes, do you qualify? It’s important to remember that just because you can legally file, does not necessarily mean you qualify for Chapter 7 or Chapter 13 bankruptcy. Luckily, when you enlist the services of a bankruptcy attorney, you will be able to go over the specifics of your financial situation and see which, if any, form of bankruptcy you qualify for.

If you are facing financial burdens you just can’t manage--even as a young person--you need The Jones Law Firm for your Ohio bankruptcy.

No matter your age, there is no shame in seeking financial assistance to get you back on track and moving on with life. Let The Jones Law Firm help you in your bankruptcy process. We can take a look at your debts and assets and help to determine if Chapter 7 or Chapter 13 bankruptcy is right for you. If you live in Columbus, Ohio, let The Jones Law Firm kick-start your financial future. Contact The Jones Law Firm today.
Categories: General Bankruptcy