Do Seniors Need to File for Bankruptcy?

As a senior, have you considered bankruptcy as an option to resolve a financial problem? Those belonging to this demographic tend to be uneasy when it comes to filing for bankruptcy. But have you found yourself needing the debt relief that only bankruptcy can provide? This can be a workable situation if you talk to a bankruptcy attorney. Before using up your precious retirement funds to help you pay down debts, ask him or her to review your situation and tell you of your options. If you still aren't convinced, then this article will fill you in on how bankruptcy is a good option for you.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy essentially allows you to wipe your financial slate clean without worrying about making “past due” amounts. Certain properties will be sold and then used to repay debts. If there are no properties that can be resold, many of the debts will be discharged or canceled, once the bankruptcy case concludes.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to reorganize your debt. You work with a bankruptcy attorney to set forth a plan to repay as much as your debt as possible during a 3-5 year period. You’ll be required by a bankruptcy court to provide detailed financial statements that support your proclaimed revenue and expenses. Once the plan is created, you’ll have to make monthly payments to a trustee, who, in turn, pays off your creditors. Once you have completed the repayment plan, you are no longer responsible bankruptcy attorney shady side md for any previous debts, even if through repayment, you were not required to pay the entire amount that was owed. Chapter 13 also stops increases on interest rates, such as the interest rate owed on a credit card.

Chapter 11 Bankruptcy

While Chapter 11 is typically filed by businesses and corporations, Chapter 11 can also be used by individuals. If you are the owner of a sole proprietorship, you are the debtor. You also do not have a separate identity from your business. Additionally, individuals will choose Chapter 11 if they are unable to file Chapter 13 because their debts are too bankruptcy lawyer shady side md high or their finances are complex.

A Chapter 11 restructuring plan can help a debtor balance his or her income and expenses while also regaining profitability and continuing operations. During Chapter 11, a debtor is also able to sell some or all of his or her assets to pay down debt.

Typically, an individual will file Chapter 7 or Chapter 13, rather than Chapter 11.

Sometimes, a looming debt may be the cause of fear when you're nearing the retirement age. Please don't start pulling out money on your retirement accounts just to pay one. Talk with a bankruptcy attorney first. This is a common mistake by most pre-retirees. They will deplete their retirement savings to get rid of their debts. The truth of the matter is they're only putting off their retirement even longer. At Baneylaw P.C., Bankruptcy and Consumer Law, we can help you put an end to debt problems and regain control of your financial future.