Bankruptcy and Seniors is not uncommon. Seniors (over the age of 65) file bankruptcy much more frequently than most people think. Bankruptcy can be a very powerful option for people of retirement age. Bankruptcy can be the tool that some seniors need for a rewarding retirement.
Many people approaching retirement age have accumulated large amounts of debt that make retirement impossible. These same seniors may have abundant savings in 401(k)s or other retirement accounts, but do not want to deplete their only retirement savings to repay their debts. In order to make their budget possible, many seniors choose to file bankruptcy so that they will be able to live on their reduced retirement income.
The transition to fixed income can be difficult for many seniors who have made much higher levels of income in the past. This can cause spending levels that that do not match up to the senior’s new fixed income level. The senior will then incur large, unmanageable credit card or other debts that simply cannot be repaid at their new income level.
Seniors that find themselves saddled with large unsecured debts that they cannot repay may want to consider filing for bankruptcy. In order to stop aggressive collection, seniors many times turn to bankruptcy options in order to reestablish a budget that can be supported at their new fixed income level.
Seniors may be “judgment proof” which is basically a financial situation where creditors will never be able to collect on their debts. If you only receive Social Security income or other fixed incomes and do not own real estate, then there is a strong chance you could be judgment proof.
Although you may be a senior and judgment proof, some seniors still elect to file bankruptcy in order to eliminate collection efforts and to clean their credit. A judgment proof status can be very protective for those who really do not have money to pay back the creditors. However, this status does not prohibit your creditors from suing you or taking you to court which can be quite stressful and undesirable for many seniors.
Seniors, perhaps more than anybody, should not avoid looking into bankruptcy options. Because many seniors are faced with fixed income, it may be very liberating for a senior to file bankruptcy in order to have a workable budget during their retirement. If you are a senior who is fighting an impossible debt load, you should contact a local bankruptcy attorney for a free consultation.
~Indianapolis Bankruptcy Attorney John F. Bymaster on Bankruptcy and Seniors