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Is Chapter 7 bankruptcy a good fit for senior citizens?

Virtually all Tennessee residents are aware of the need to prepare for their retirement years. In practice, however, many people fail to make adequate preparations, and find themselves in dire financial straits during their later years. Others are simply victims of circumstance, and have fallen into debt through no fault of their own. No matter how a senior citizen reached the point of serious financial strain, finding relief is often a top priority. Chapter 7 bankruptcy is one path back toward financial stability.

When an individual files for Chapter 7 bankruptcy, all debt collection efforts stop immediately. That means no more vague yet threatening letters in the mail and no more aggressive bill collectors on the phone. For seniors who have been plagued with debt collection for years, the cessation of those efforts is a big relief. In addition, many scams target senior citizens who are under financial pressure. Filing for bankruptcy eliminates an older person’s need to determine which collections are legitimate, and which may be scams.

A successful Chapter 7 bankruptcy can also lead to the elimination of many unsecured debts. That list includes medical debt, credit card debt and many other obligations. Once those debts are discharged, seniors often find that they have more room in their budget to cover basic living expenses. While it is true that filing for bankruptcy will lead to a drop in one’s credit score, older people are usually not shopping for a new home or vehicle, and can weather a lowered score with little repercussion.

Filing for Chapter 7 bankruptcy is not a decision to be made lightly. Senior citizens who are considering their options should schedule a consultation with a Tennessee attorney who focuses on bankruptcy law to review all available options. For many older Americans, however, personal bankruptcy is the most effective and expedient path out of overwhelming levels of debt.

Source: lasvegassun.com, “Ask an Attorney: Coping with debt as a senior citizen“, Xenophon Peters, May 8, 2017

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