People often have to take debts to fulfill their commitment towards their family, especially in case of bad times. However, many times, for elderly people, it is a bit difficult to pay their debts, especially after 65 years of age. There is some confusion as to who will be paying for the debts; as most of the times, income and assets are protected by the law. However, there are chances that the creditors might wait for some time so that they can recover the dues from the children of such elder debtors’. Often many people lack clarity of doubt when it comes to handling or mishandling of finances. This often results in them facing a situation like bankruptcy. In case you are facing a similar situation and are looking for lawyers to understand how the process works, contact at (888-297-6203)for Dallas based lawyers Recovery Law Group.
Why can’t creditors collect dues from elder debtors?
Since creditors are prohibited from seizing payments from elder debtors, even for legitimate assets and debts, they often wait for such clients to pass away before they make collection attempts with their survivors, especially children. The senior citizens are in most cases protected by pension laws, social security act or exemptions laws, making it difficult for creditors to pursue any action.
What happens when an elder debtor passes away?
In case an elder debtor passes away, leaving behind an unpaid debt, his/her heirs are not personally responsible for the debts. However, before any of the heirs receives anything, the debts need to be completely paid off. Thus the estate cannot be touched before paying off the debts. In case a living trust had been formed by the debtor, the succeeding trustee would be required to pay off the debts first before any other thing.
In case, the debtor’s property is dispersed without taking care of the decedent’s probate or debts, the property will be responsible for the debts for a specific amount of time, which varies from one state to another. In case an individual leaves behind debt after their death, the heirs cannot get their share of the estate. More often than not, creditors approach to collect the assets to get their dues.
Can a debtor’s children opt for bankruptcy to protect themselves from creditors?
In case the elderly debtor was suffering from serious financial issues and had accumulated huge debts before passing away, bankruptcy can be a good idea to protect his/her children. Many assets are protected from creditors, thanks to bankruptcy. Thus many seniors find it useful to file for bankruptcy. Moreover, few exemptions which protect certain assets are available during the bankruptcy process. Thus, survivors of an elderly debtor can be forced to cough up dues by creditors if they don’t opt for a bankruptcy filing.
In case, you are facing severe financial issues and are worried how your debts are going to affect your children, it is important to consult bankruptcy lawyers, who will help determine which bankruptcy chapter will help you the most.