For most seniors living in Tennessee, filing bankruptcy is not an option automatically considered. If you struggle living on a fixed income and have a large amount of debt, you may have options. At Ben Sissman, Attorney at Law, we often assist clients filing for bankruptcy.
According to the Washington Post, more Americans are filing for bankruptcy than ever before. This is, in part, due to lower income levels, inflation and skyrocketing health care costs. Medical bills are a leading cause of people 65 and older emptying their bank accounts and drowning in debt. Bankruptcy can protect you from creditors and help eliminate debilitating medical bills.
Filing Chapter 7 can result in payment plans that make paying bills manageable and significantly decrease the total amount paid to creditors. If you depend on retirement accounts to help you through the golden years, Federal law protects several types of accounts from creditors, including the following:
- Defined benefit plans
- IRAs
- 402(b)s
- 401(k)s
- Profit-sharing plans
You must meet specific requirements for the court to approve you for bankruptcy. However, if the bulk of your monthly earnings come from Social Security income, there is a good chance it will.
Bankruptcy can impact your life in many ways. It can affect your ability to get a new car and secure an apartment lease. For some people, alternatives such as renegotiating secured loans, deferring deb and interest debt reduction may provide enough breathing room. If you have overwhelming medical debt from an extended illness, these options may still fall short. An attorney can help you navigate the complex legal process and present options available to you. Visit our webpage for more information on this topic.