Bankruptcy’s Best Benefit for Older Americans Skip to main content

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Bankruptcy’s Best Benefit for Older Americans

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Facing everything from medical markups, to investment issues, to mortgage meltdowns to cash-strapped kids, it’s clearer than ever that our country’s oldest citizens represent one of the hardest hit demographics in the country’s lingering economic malaise. As a result, more and more mature Americans have been relying on high interest credit cards to scrape by, leading some to subsequently seek the financial safe havens a bankruptcy can provide. In fact, the Consumer Bankruptcy Project found that some 66 percent of senior citizens filing for bankruptcy said credit card debt was the cause for their recent financial issues.

Add to the aforementioned reasons that older Americans are getting “scrooged” this holiday season, the fact that medical expenses, cost of living and taxes continue to rise, while the amount of Social Security payments remain stagnant as early retirement plans mean huge losses. And, obviously even when monthly expenses stay the same, when income decreases and the unexpected occurs, the only alternative is to accrue lots and lots of debt.

If you count yourself among the millions of older Americans facing devastating debt loads, take heart. Bankruptcy does offer the senior set with the unique opportunity to not only end creditor harassment, but also stop a “debtful” drain that creates retirement savings for other expenses common to those on a fixed income.

So, if you count yourself among the country’s mature citizenry and you’ve been savaged by this ugly economy, what’s keeping you from salvaging your savings via a personal bankruptcy? If you’re like many who are wary of walking into an attorney’s office, you likely fear that filing for bankruptcy will drain your retirement savings, and leave you nothing to grow on. But it’s important to understand that bankruptcy benefits older Americans further because much-needed Social Security and retirement accounts remain untouched by creditors, courts and trustees in a bankruptcy filing. This leaves your most valuable sources of income untouched and available for your fresh financial start.

When you consider the rewards you can reap from a bankruptcy filing, the only other obstacle could be your generation’s belief that bankruptcy signifies some sort of a financial failure. On the contrary, bankruptcy allows you to turn unprecedented economic circumstances into a second chance, beginning again with a new budget as we all wait out these recessionary conditions in retirement.  Keep in mind, a Chapter 7 liquidation bankruptcy is a perfect opportunity to get rid of that pesky unsecured debt such as credit card bills, while also holding on to retirement savings such as IRAs and 401(k)s. In the alternative, older Americans seeking more exemptions to hold onto larger assets in cars and homes may choose the repayment power of a Chapter 13 bankruptcy, dispensing with all or most debt in as little as three years.

Regardless, of the type of bankruptcy you choose, or even your age, speaking with a bankruptcy expert is always the best way to get started on your (second) new beginning after retirement.

So, if you’re a senior who’s been effected by the economy and are now considering new ways to get out from underneath ever-increasing debt, knowing a qualified bankruptcy attorney can help you conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

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