The biggest cause of the elderly seeking protection when polling bankruptcy lawyers, though the courts are huge credit card debt.Another factor in the rise in bankruptcy filings is that many seniors are unaware that retirement accounts and social security assets are excluded from creditor garnishment in most instances. These variables and the confusion of how the bankruptcy courts operate are good explanations why seniors need to contact a local bankruptcy attorney for assistance with questions. These highly qualified experts will help you navigate the laws relating to filing for insurance against bankruptcy.In meeting a bankruptcy attorney, one of the first things you will like to do is to detail your unpaid debts by type.Read More Getting through a Bankruptcy as a Senior
Which debts, such as a house or car loan, are secured by an asset, which debts, such as a signature loan or a credit card balance, are unsecured and which debts, such as taxes owed to state or federal agencies, are public. What you’ll find in the law of bankruptcy is that an unsecured debt in a bankruptcy is the easiest to eliminate or control in all debt types. The choices open to you here are a re-negotiation with the lender to repay only the amount owed and to re-negotiate the interest rates to a more manageable level or to cancel the debt entirely. In certain ways, the interest on these debt forms can be completely reduced and the amount owed can be paid off. Payments may also be negotiated on primary secured loans to represent the amount of actual income that flows through the individual household. This results in a substantially reduced monthly outflow once this has been achieved.Unfortunately, taxes owed to state or government agencies may not be fully ignored, generally speaking. There are exceptions to the rule, of course, but a consultation with your bankruptcy lawyer is important to get a good final response.
When your debts have been categorised, your next move is to discuss with your bankruptcy counsel advice what form of bankruptcy action to take, a reorganisation of chapter 13 or liquidation of chapter 7. The key difference is that Chapter 13 allows you to repay your lender with a shortened payment schedule, normally for a period of five years. This payment plan is only put in motion after the borrower has secured a reduction of debt and a reduction of interest or the removal of debt. The liquidation of chapter 7 facilitates the full discharge and elimination of all qualifying debts.