Bankruptcy for Seniors FAQ
Today, there are more Americans over the age of 65 than ever before. This age group made up 13 percent of the total population in 2010, as opposed to 4.1 percent in 1900. Due to the increase in the number of elderly people, it is no surprise that there has been an increase in bankruptcy filings for this age group. However, the elderly are filing bankruptcy at a significantly disproportionate rate than the general growth of their population and there is nothing to indicate that this trend will end any time soon.
Don’t take on your creditors alone! As a senior citizen, do you have questions about bankruptcy costs and assistance?
Call or email the Counce Law Firm at 901-201-6012.
Free confidential consultation with a lawyer, not a paralegal.
We take the time to understand your needs and answer all of your questions. While we want to solve your problem quickly, it’s important that you are comfortable with the process, and understand how it will impact you. These thoughtful conversations enable us to ensure the best possible outcomes.
3333 Poplar Ave. – just West of Poplar & Highland – Free Parking
There is no single cause for the increased bankruptcy filings by the elderly and the causes range from medical bills to financial abuse to credit cards.
Are Medical Bills A Reason To File For Bankruptcy?
Older people are likely to incur more medical bills than their younger counterparts. In fact, medical debt is a primary cause of elderly bankruptcy filings. However, medical debt is often discharged in both Chapter 7 and Chapter 13 bankruptcies.
My Savings Took A Big Hit — Should I File?
The stock market crash in 2008 and the following recession has significantly reduced many people’s retirement savings as well as their returns on investments. The tight job market has made it hard for the elderly to find meaningful employment and further worsened their financial problems.
Can Unpaid Student Loans Come Back To Haunt Me?
Student loans are causing many seniors financial distress. The Debt Collection Improvement Act of 1996 gives the federal government the power to withhold part of a retiree’s Social Security payment if they default on a government debt, student loans included.
I Lost Money In A Scam — Now What?
There are several reasons why seniors make attractive targets for financial abuse. They control over 70 percent of the nation’s wealth. The elderly are unlikely to take legal action against their abuser because of infirmity or embarrassment. Additionally, many seniors depend on others for help, giving those helpers power over them as well as access to their assets. Financial abuse is often perpetrated by friends or family members.
Financial abuse can take many different forms. These include having the elder co-sign on a loan or borrow money for the benefit of the abuser with no intention of repaying the loan. This abuse could also involve getting a deed, will, or power of attorney signed through deception, coercion or undue influence. An abuser may also promise care in exchange for some benefit and then not follow through on their end of the bargain.
Credit Card Debt Affects Everyone
Another primary reason for bankruptcy filings among the elderly seems to be based on credit card debt. Elder debtors often have 50 percent more credit card debt than younger debtors. Credit card debt is often discharged in both Chapter 7 and Chapter 13 bankruptcy.
We Can Protect Your Assets
Often, the elderly do not want to consider bankruptcy because they believe they will lose everything that they have spent their lives working for. This is usually not true and in most bankruptcy cases, they can keep their homes, car, and other property.
One of the purposes of the Bankruptcy Code is to provide a fresh start to the debtor, but often the elderly do not have the time to rebuild their assets. Since many seniors rely on retirement savings rather than on future income to support themselves, the Bankruptcy Code allows for the exemption (protection from being taken to satisfy debts) of retirement funds that are exempt from taxation.
Social Security is also exempt and protected from being taken to pay your debts.
Contact Us Today
Unlike many firms you will always discuss your financial situation with an attorney, not a paralegal or assistant.
We are a Title 11 Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.