Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

Chapter 7 may help older residents struggling with debt

Last week on our Wayne County bankruptcy law blog, as we were discussing the consumer medical debt crisis in this country, we mentioned how some turn to credit counseling or debt negotiation agencies for debt relief. There may, as we mentioned, be underlying concerns about the true interests or even the legitimacy of some such companies. This week, we want to highlight another situation in which Chapter 7 bankruptcy may be a better option for Wayne County residents who are seeking a fresh financial start.

A reader recently commented in a national publication that her mother is almost 80 years old and struggling with debt. On top of that, memory problems make budgeting and paying bills a confusing and frustrating endeavor. While this elderly woman's Social Security and retirement benefits remain at a set level, her monthly credit card payments have been steadily rising thanks to exorbitant interest rates. These two factors -- increasing payments and a fixed income -- make for a seemingly impossible situation.

The daughter writing the letter had tried to work with a nonprofit company that would negotiate with creditors for lower interest rates and monthly payments. She found, however, that even those payments were not necessarily any more manageable, that the banks simply were not playing along and even dealing with the debt negotiation company was "a nightmare."

For older Wayne County residents in a situation like this -- where income is fixed, budgeting skills are not at their sharpest and returning to the work force is no longer an option due to health conditions -- Chapter 7 bankruptcy is an option well worth considering. Particularly if the majority of the debt is unsecured debt, like credit cards and medical bills, Chapter 7 will discharge these completely. Retirement benefits are an important concern for these individuals, and they are exempt from liquidation, as are vehicles below a certain value and even some equity in a home.

Eliminating one's unsecured debt with Chapter 7 can actually make living off of a fixed income a much more viable proposition. A legal professional can further discuss any concerns elderly residents and their families may have about how bankruptcy would affect their own situations.

Source: Huffington Post, "My Elderly Mother Is Struggling in Credit Counseling -- What About Bankruptcy?," Steve Rhode, July 30, 2014

No Comments

Leave a comment
Comment Information
  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit superlawyers.com | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • ICLE CONTRIBUTOR
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy