What are the advantages and disadvantages of bankruptcy for seniors?

When times are rough economically in the United States, it is common for everyone to feel the effects, even older adults. In the 21st century, an increasing number of senior citizens in the United States are finding it difficult to effectively manage their financial obligations.

Elders are among the most vulnerable residents in the country, and as a result, they want debt reduction choices that will not jeopardize their safety. For instance, if they continue to live in the same house, it is imperative that it be preserved in its current state.

If you are suffering from debt or have questions about this area, you should think about getting assistance from a chapter 13 bankruptcy lawyer highland in at Benenati Law Firm. 

Is filing for bankruptcy under Chapter 7 an option?

Beneficial outcomes for senior persons can be achieved through a successful Chapter 7 bankruptcy. It can wipe off your medical and credit card debt, putting an end to the harsh collection tactics that have been used against you. If you file for bankruptcy under Chapter 7, you can further secure your retirement savings, which were previously shielded from your creditors.

The majority of senior citizens are not interested in purchasing a new vehicle or home, therefore the effect of bankruptcy on their credit score is likely to be modest. After filing for Chapter 7 bankruptcy in Florida, it is likely that you will be able to keep the house that you now live in with your family.

What are some of the drawbacks?

Neither chapter 7 nor chapter 13 will be of much use to you if the majority of your debt is comprised of school loans or responsibilities related to family law (such as alimony, child support, etc.). These debts cannot be discharged in any type of bankruptcy because they do not meet the requirements.

It’s possible that you’ll have to sell or give away some of your personal belongings as well. This can be a devastating consequence of filing for bankruptcy for those who, over the course of their lives, have amassed significant amounts of sentimental property. There is a possibility that the family treasures that have been passed down over the years are in danger as well.

The main point to be learned

Before making substantial modifications to their financial arrangements, senior individuals who live on a restricted and fixed income should get a piece of legal advice first. Your ability to avoid making mistakes that you may come to regret depends on having professional assistance and being familiar with the regulations that regulate your bankruptcy.

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