While your children are typically your primary concern when it comes to many of your life decisions, parents often forget or do not think about the positive affects that filing for bankruptcy can have on their children. The following are some ways in which filing for bankruptcy can help children, as well as families in general:
- Education costs: Parents can include the costs of educating their children who are younger than 18 years old as part of their “allowable expenses” when it comes to filing for bankruptcy.
- Student and other loans: While student loan debts are only able to be discharged in rare circumstances, such as long-term disability, parents who file for bankruptcy years before their child is college bound can give themselves time to improve their credit score, which can make the difference in being able to help co-sign a student loan for their child.
- More than the necessities: If parents are facing debt that is so overwhelming that they are having trouble paying for even the most basic necessities, it is all too common that sports lessons, music lessons and other supplemental activities for children will be eliminated. By filing for bankruptcy, parents may be able to dissolve a large amount of their debt, which can open up more disposable income that can go towards enriching children’s lives and futures.
- Emotional Impacts: The stress you feel as a result of the threats of foreclosure, creditors’ harassing phone calls and possible wage garnishments can impact your children’s emotional well being. Considering that massive debt is a major cause of fighting between parents and possibly even divorce, the effects on children can be far more devastating. However, filing for bankruptcy can help discharge some of this debt, allowing for financial and emotional relief for both children and parents alike.
For more information and professional advice regarding bankruptcy, contact our trusted bankruptcy lawyers. We can not only inform you about your best options for moving forward, but we can also help you avoid financially ruinous pitfalls that may intensify your debt situation.