Most people use bankruptcy as a tool to help them recover from bad planning, foolish spending and/or unfortunate circumstances and start fresh. But what about people who don’t really need to start over, elderly people who have been diligent about paying their bills all of their lives until they suddenly find themselves in a financial bind.
Bankruptcy is still an option for the elderly although if they own their home outright there might be a few other options they can pursue and should consult an experienced bankruptcy attorney at Allmand Law to determine the best solution. But a bankruptcy for an older person can be especially useful when they’ve co-signed on debt for their children or grandchildren and are suddenly stuck with bills they can’t afford.
When seniors are experiencing a financial crisis its typically because they don’t have a large amount of savings left, they’re at a point in their lives where they’re living on a restricted budget and any social security or pension payments they get are probably a large part of their income. These people will typically be approved for a Chapter 7 bankruptcy fairly easily, although the home may provide a little snag. People in this situation can also breathe easily as their social security and pension payments are exempt from bankruptcy.
If you are a senior or you know one in this situation, it’s time to let go of any notions that paying all of your debts is a priority. At this point in your life your priorities are meeting your basic needs, which include healthcare and medications. If you can’t do these things then a bankruptcy might be a way for you to get back on track with your priorities.