When Is Bankruptcy Right for Retired People?

Bankruptcy is something that typically happens earlier in life. Usually it involves younger individuals who have taken missteps financially, or who have experienced unforeseen financial hardships out of their control. Most of the time, people who have reached retirement age do not find themselves in a position to file for bankruptcy. However, everyone is different and in some cases elderly or retired individuals do have a need for bankruptcy.

So what kinds of life situations could lead a retired person or couple to choose to file for bankruptcy? One such situation where Chapter 13 bankruptcy could be a good option is for those who have a second mortgage. If your house is worth less than what is owed on your first mortgage, then you can strip the second mortgage in full.  By choosing Chapter 13 bankruptcy retirees could also get assistance with any income tax liens and they can protect the assets they have from being repossessed.

Many people worry about their credit score when they are considering bankruptcy. However, for people who have already retired, having a high credit score may not be as much of a concern for someone who is younger and still trying to establish his or credit. In addition, many elderly no longer have a need to receive much credit, as they have already purchased a home and vehicles. Therefore, in cases like this the benefits of choosing bankruptcy are greater than the negatives, including the social stigma of bankruptcy.

There are many tough decisions to make for anyone considering bankruptcy, no matter what age you are or what stage of life you’re in. That’s why it’s so important to seek the advice of an experienced and trusted Merrillville bankruptcy attorney if you happen to find yourself in this situation. We understand how bankruptcy works and how it will affect you. We can help you consider all your options, weigh the pros and cons, and then make an educated decision based on the facts. Don’t rush into any major decisions until you have contacted Whitten & Whitten in Merrillville. We have your best interest in mind and we’ll fight for your rights. Please click here to contact us online or give us a call at 219-756-0555.