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Old age is defiantly a tough time. After living a luxurious life with regular earnings and expenditure, when you become dependent on social security as your bank balance life gets tough. Moreover, With the ever-increasing rise in tax rates and decreasing pension amounts, many senior citizens are finding themselves filing for bankruptcy. This is because the fixed source of income goes down whereas the health care expenses and tax amount go down, many find it difficult to create a balance between both.
Let’s find out the benefits or drawbacks that a senior might face if they file for bankruptcy-
- Medical debt – today the biggest concern is the ever-increasing medical expenses. Due to this, most people find a number of bills piling up. In fact, as per research, the leading cause of filing for bankruptcy, irrespective of age is medical debt. Also, medical debt is fully dischargeable under bankruptcy under any chapter.
- Home equity – if you file for bankruptcy, especially under chapter 7, the equity that you have in your home is non-dischargeable and can be surrendered to pay off your creditors.
- Retirement Account – as per the federal bankruptcy law, the retirement funds are untouchable and cannot be discharged or liquidated during bankruptcy.
Filing for bankruptcy is not a cakewalk. If you plan to go ahead to safeguard your retirement day and get rid of all the piled up bills, book an appointment with the experienced – https://recoverylawgroup.com/bankruptcy/