The rising number of senior and elderly clients seeking a bankruptcy attorney for assistance is one of the fascinating things that the recession has brought to light. While bankruptcy filings by this segment of the population are not fresh, the rate of senior bankruptcies has risen by over 400 percent in the last ten years. Many individuals would believe that this rise is a direct reaction to business declines and medical crises and the spectre of a stay in a nursing home. Surprisingly, this isn’t the primary factor. The primary cause of the elderly seeking safety in polling bankruptcy lawyers though the courts are large credit card debt. Just view the article
The average senior debt balance is out of proportion to the general population, as a senior holds over $10,000 in unsecured debt on average; this reflects a 50 percent rise over the same 2005 figures. Another aspect of the rise in bankruptcy filings is that many seniors are unaware of the fact that retirement savings and social security accounts are excluded from creditor garnishment in most situations. These variables and the confusion of how bankruptcy courts operate are good explanations why seniors need to contact a local bankruptcy attorney for assistance with questions. These highly trained experts will assist you in navigating the laws relevant to bankruptcy protection filing.
In meeting a bankruptcy lawyer, one of the first things you will like to do is to detail your unpaid debts by type. 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 will find under bankruptcy law is that it is the simplest to delete or handle an unsecured debt in a bankruptcy of all debt levels. A re-negotiation with the lender is the option open to you here to only pay back the amount owed and re-negotiate interest rates to a more manageable level or fully cancel the debt. The interest on these forms of debt can be completely reduced in certain situations and the amount owed can be paid off. Payments may also be negotiated on primary secured loans to represent the amount of real income that is coming through the individual household. This results in a substantially reduced monthly outflow until this is done.
Unfortunately, taxes owed to state or government agencies may not be completely ignored, generally speaking. There are exceptions to the law, of course, but a consultation with your bankruptcy attorney is important to have a definitive final response. If your debts have been categorised, your next move is to discuss with your bankruptcy counsel advice what form of bankruptcy action to take, a re-organization 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 set in motion only after the borrower has negotiated a reduction of debt and a reduction of interest or the removal of debt. The liquidation of Chapter 7 enables all qualifying debts to be completely discharged and removed.