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It is now becoming increasingly common to see senior citizens in deep financial trouble. Many are struggling with huge medical bills, credit card debt, and other payments that exceed their monthly income. If this sounds familiar, Chapter 7 bankruptcy lawyers in Raleigh, NC may be able to provide a way out.
The Rise of Seniors Living in the Red
The elderly are prone to financial issues, especially those who do not have substantial retirement savings. Many seniors find themselves facing problems like high medical debts, home equity loan, and mortgage debt.
After retirement, most seniors also have to survive on a fixed income and a very tight budget. The social safety net for the elderly is not so safe anymore. Here are more alarming data:
• In 2010 alone, more than 50% of seniors in America had debt. That number has since grown larger.
• The average amount of debt among the elderly is $50,000.
• People aged 60 and older are filing for bankruptcy 15% more than they did a decade ago.
How do seniors deal with financial decline?
Due to embarrassment, lack of social support, and concern for those around them, most seniors try to deal with their debt alone. They mortgage their homes until the equity is drained, sell their financial possessions, and even go without medication and meals just to pay off their debt.
At Weik Law Office, we want you to know that you do not have to live like this for the rest of your life.
Filing for bankruptcy is indeed a hard decision. Trust your bankruptcy lawyer in Raleigh, NC to guide you through the bankruptcy procedure with dignity and compassion until you are finally free from debt and able to enjoy your golden years.
Filing for Chapter 7 Bankruptcy May Be the Best Choice for Seniors
Due to fixed incomes, some seniors worry that they may be saddled with a payment plan instead of complete debt discharge under Chapter 7. The good news is that the federal law makes exceptions for the elderly. For instance, some pension and income like Social Security are typically not included in the Chapter 7 Bankruptcy Means Test.
Here is a quick look at how Chapter 7 can impact other bills and sources of income:
- Medical Bills and Bankruptcy
Under Chapter 7, most medical debt can be wiped out in a matter of months. If you are facing immediate hospitalization and other medical bills, you can even wait for a while longer so they can be included in the discharge as well.
- Bankruptcy and Retirement Accounts
Chapter 7 protects most retirement accounts which include sharing plans, 401(k)s, IRAs, and 403(b)s. It is best to discuss this with your Raleigh bankruptcy attorney to determine which accounts would not be touched by the filing.
- Bankruptcy and Social Security Income
Again, your Social Security income is often completely safe under Chapter 7. In fact, if you get most or all of your income from Social Security, you will likely have an easier time qualifying for Chapter 7.
Weik Law Office: Helping Seniors in Times of Hardship
No matter your age, it is never too late to be free from debt and gain financial independence. With an experienced Chapter 7 bankruptcy lawyer in Raleigh on your side, you can look forward to a better future during your retirement years.
Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our professionals.