As Americans are living longer, financial challenges as we age are becoming more common. Even if you have spent your entire life working hard, making sound financial decisions and saving money, the combination of increased healthcare costs, inflation and reduced income can result in seniors having overwhelming debt. If you are in this difficult situation, you should explore whether bankruptcy could help you.
One question we hear often at Levitt & Slafkes is – I am a senior citizen. Should I consider filing bankruptcy? The answer isn’t one-size-fits-all, but understanding the key factors can help you or your loved ones to make an informed decision.
When A Chapter 7 Bankruptcy Might Make Sense for You
Bankruptcy can be a powerful tool for seniors facing overwhelming debt. In certain situations, it can offer a fresh start and much-needed relief from the stress debt can cause.
Bankruptcy might be right for you if:
- You can’t make your minimum credit card payments;
- Your phone is ringing off the hook from debt collector calls;
- Your debt far exceeds your income and assets;
- You’re using credit cards to pay for basic living expenses;
- You can’t pay your medical bills; and
- You are feeling very stressed because of your financial situation.
For many seniors, bankruptcy can eliminate unsecured debts like credit cards and medical bills, allowing them to focus on essential living expenses.
Benefits of a Chapter 7 Bankruptcy
If you are a senior facing unmanageable debt, here are some of the benefits to
filing a Chapter 7 Bankruptcy.
A Chapter 7 Bankruptcy Can Give You Relief from Medical Debt
A Chapter 7 Bankruptcy will eliminate your medical debt. As we age, medical expenses are often why we are drowning in debt. All of the copays for medicine and doctors add up quickly. If you can imagine the relief you will get knowing your past medical debt is gone, then you can understand why many seniors file for bankruptcy.
Chapter 7 Bankruptcy Can Protect Retirement Assets
It is important to know that if you file for Bankruptcy, the Court does not take
your qualified retirement accounts as they are considered exempt and the law allows you to keep them.
Some seniors try to pay their bills by using their retirement savings. By postponing filing for bankruptcy, you can lose money and assets that you would get to keep when you file bankruptcy. For example, taking money out of your retirement account to pay your debt can deplete an account that would be fully exempt (that you could keep) after filing bankruptcy. The better approach is to safeguard your assets and eliminate your debt by filing bankruptcy as soon as possible.
Chapter 7 Bankruptcy Relief Occurs Quickly
A Chapter 7 bankruptcy is a relatively quick process. From filing the petition to getting your discharge (the end of the bankruptcy which eliminates your debt) is approximately 3 to 6 months.
Let Levitt and Slafkes Help You Move Forward
If you are a senior citizen and are interested in discussing bankruptcy relief, contact the compassionate and knowledge the attorneys at attorneys at Levitt & Slafkes, P.C. for a free consultation. Call us at 973-323-2953, or contact us online
We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 40 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.