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According to the latest data from theU.S.
Courts, the total number ofpersonal bankruptcyfilings increased by about 16% from 2023 to 2024.
During this period, there were 434,064 total filings compared to the 374,240 filings the year before.
But how does your parents bankruptcy affect you?
Heres what the experts say.
It Can Impact Your Inheritance
You cant talk about bankruptcy without mentioning the potential financial losses involved.
If your parents file and lose their home, it could impact their legacy and your future inheritance.
For those in their parents will who anticipate an inheritance, this can impact their own long-term financial planning.
Theres Also an Emotional Impact
Finances and damaged credit arent the only areas bankruptcy can affect.
For children who are still living at home, it can also be an emotionally stressful time.
Bankruptcy often helps relieve financial stress, which I think kids feel.
When finances are freer, it also has that added emotional benefit.
So, if youre concerned about your parents well-being, know that filing might sometimes be their best option.
There is the stigma that can come with bankruptcy, but that seems to be reducing over the years.
I have had many clients who say they feel better immediately after filing they feel better and sleep better.
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