What Senior Citizens Need to Know About Bankruptcy

If you’re a senior citizen and you’ve been retired from your job for a while, you may have some financial stress from unexpected health care costs or other living expenses. Although a retirement plan and social security benefits are supposed to cover the cost of living when you begin to get older, it’s not always enough to keep you out of debt.

When you begin to feel like filing for bankruptcy is the only option, it’s important to talk to a bankruptcy lawyer to figure out whether bankruptcy will be beneficial for your financial situation. At Rowdy G. Williams Law Firm, our attorneys have a deep understanding of bankruptcy code and can investigate your finances to determine what makes the most sense for you.  

When It Makes Sense to File

There are only certain situations in which filing for bankruptcy makes sense as a senior citizen. Once you go over Chapter 7 and Chapter 13 of the bankruptcy code with your lawyer, you’ll get a better sense of how these codes apply to you. If your debt can be discharged completely using the guidelines applied in Chapter 7, then bankruptcy may be a good option.

Bankruptcy also makes sense if you have debts which you feel you can better pay off using a repayment plan as outlined in Chapter 13. Your lawyer can go over the details of both of these options with you to better determine whether bankruptcy is right for you.

When It Doesn’t Make Sense to File

Bankruptcy doesn’t make sense for you if you’re a senior citizen without anything a creditor can take. For instance, you may have a lot of debt, but a creditor isn’t allowed to take your car, your social security benefits, your retirement account, or your household goods. If these are the only things you have, then there’s no reason to file.

On the other hand, filing for bankruptcy doesn’t make sense if you have too many assets, because, under Chapter 7, you may lose valuable property or assets if you file for bankruptcy. Also, under Chapter 13, you may end up with a high repayment plan if you have too many assets and file for bankruptcy.

Credit Counseling Requirement

Once you’ve decided whether or not to file for bankruptcy, it’s important to know that a credit counseling course is required before you can file. This course is required for everyone, regardless of age, because it shows the state that you have some basic knowledge of your financial situation. A debtor education course is also required after you file to ensure you’re completely aware of what’s to come.

Contact an Indiana Bankruptcy Lawyer

If you’re a senior citizen who’s considering filing for bankruptcy, it’s understandable that you may have various questions and concerns about the legal process. With the help of a bankruptcy lawyer from Rowdy G. Williams Law Firm, you can rest assured that you’ll receive excellent legal advice so you can be confident in your decision before you make it.

If you’re ready to speak with an Indiana bankruptcy lawyer today, you can fill out the contact form below or call us at 1-812-232-7400.