Bankruptcy for the Elderly: Facts from Your Bankruptcy Lawyer in Raleigh

Most people dream of a comfortable and financially secure retirement. For too many older Americans, however, financial struggles due to debt are now the reality. It is a source of high stress to a demographic that is already vulnerable to declining job opportunities, health issues, and isolation. If this is something you or your elderly loved one is dealing with, a bankruptcy lawyer in Raleigh can help you achieve freedom from the crushing weight of debt.

Why Many Older Adults Are Going Into Debt

Experts have observed a rapid surge of retirees getting into insurmountable debt. The skyrocketing figures are due to the following reasons:

• • Medical expenses
  • Credit card debt
  • Job loss
  • Reduced income
  • Expensive insurance co-pays

Many seniors also experience a lack of support, lack of access to necessities, and isolation. Filing for Raleigh bankruptcy offers a way to ease the burden of debt and get peace of mind in their golden years.

What Kind of Bankruptcy Can Seniors Qualify For?

Most older adults filing for bankruptcy will qualify for either Chapter 7 or Chapter 13 bankruptcy:

• • Chapter 7
    This type of bankruptcy will allow seniors to discharge most or all of their debts. Chapter 7 is usually granted to filers who make less than their state’s median income.

    The court may also order a means test to determine if an elderly filer can pay a Chapter 13 plan. Under Chapter 7, the bankruptcy trustee may ask the debtor to turn over any non-exempt assets. These assets will be sold to help pay the petitioner’s creditors.

• • Chapter 13
    This type of bankruptcy involves a three-to-five-year repayment plan. Successful filers generally get to keep their property and assets.

    Older adults who still have steady income may prefer this repayment plan, especially for those who do not pass the means test or make more than the state’s median income.

The success of filing may depend on selecting the right type of bankruptcy to file for. Therefore, it is best for petitioners to seek the help of a bankruptcy lawyer in Raleigh for expert assistance on the next steps.

Seniors May Be Able to Keep Their Homes After Filing for Bankruptcy

There is something called a homestead exemption when it comes to bankruptcy laws. It is a certain amount of home equity that’s protected under bankruptcy. However, some seniors may risk losing their homes, especially if they have large amounts of equity or unpaid mortgage.

It is critical to learn how much equity the debtor’s state protects under bankruptcy. Some cover the full value of the petitioner’s home under Chapter 7 bankruptcy in Raleigh. On the other hand, older adults may keep their home under Chapter 13, provided they are able to continue paying the mortgage. The repayment plan can also help debtors pay mortgage arrears.

Learn More About Bankruptcy for the Elderly in Raleigh

Bankruptcy can pave the way for a more secure retirement for debt-ridden older adults. It is natural to have many questions about the decision to file, especially when it involves factors like your social security income and retirement accounts. Trust our Raleigh bankruptcy attorneys to lead you on the right path. Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our friendly professionals.