Getting through a Bankruptcy as a Senior -Brief Notes

Senior citizens around the country are beginning to pursue what is becoming a national trend through the filing of bankruptcy. According to the findings of several studies and analysis, the filing of bankruptcy by seniors and retirees is reaching an all time high.The reasoning for this is that right now the economy is not particularly strong, and seniors are the typical individuals living on a fixed income. The sum of that fixed income does not keep pace with the rate of inflation as inflation happens year after year. Health insurance premiums have passed through the roof to compound this issue, and some pension schemes have started to place limits on retired workers’ health care benefits, and some businesses have sought to cut the benefit entirely.

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Senior Americans are becoming increasingly frustrated with debt and financial commitments, more now than ever. As a result of this, one of the sad findings is that after being part of the work force for 30, 40 years or more, now is the time when seniors should be able to sit back and enjoy life, but for many, that’s not the reality they face. One report suggests that about 22 percent of those filing for bankruptcy are accounted for by people aged 55 and over.

There are many reasons why this question is faced by seniors, and many of these things are not relegated to seniors. There is the skyrocketing cost of health insurance, which often requires prescription medications, and sadly, as individuals progress in years, these are frequently used. Other requirements, such as food and clothes, are carried out on credit cards. A willingness to assist their children who may be financially struggling also plays a part. The unreasonable expectations of what compensation their pensions would generate, the benefits provided in their pensions, and the degree to which Social Security plays a minor role in their income are also a major factor.

Importance of Bankruptcy Laws

To offer some relief to debtors, bankruptcy laws have been adopted. Generally, people consciously or unknowingly fall into the debt pit, but this does not mean they have no right to live freely. If debtors are unable to repay creditors’ debts, then they may file for bankruptcy. I strongly suggest you to visit Attorney Harry C Kaufman to learn more about this. Bankruptcy is regarded by financial analysts as the last choice to fully eradicate debt. In the UK market, there are also several other solutions available, such as debt restructuring, IVA, debt reduction loans, etc. Bankruptcy, according to common law, requires the liquidation of properties. It implies that when a person becomes bankrupt, the court sells the debtor’s property to recover the creditors’ sum. It does not mean all properties are going to be sold out. Depending on the form of bankruptcy you have filed, few assets or properties can be removed from liquidation.

In the UK market, several bankruptcy laws apply. According to the requirement, debt amount and kind of debt, debtors are free to choose either kind. There are few major chapters in it, such as chapter 7, chapter 11 and chapter 13 bankruptcy. Chapter 7 in Bankruptcy includes the liquidation of assets. Chapter 11 is only open to corporations, associations, alliances, sectors, etc. Under Chapter 13, courts allow the debtor, with a low interest rate, to repay debts. It is advisable to employ the right counsel, lawyer or experts for bankruptcy. These individuals are experts and can also help you in worse circumstances. With the help of an attorney, individuals can file bankruptcy petitions so they know what to write and how to write in a paper.

The petition for bankruptcy is a document in which you declare bankruptcy and let the court know that the current debts will not be repaid. According to bankruptcy rules, creditors are not permitted to contact you for repayments after exiting bankruptcy. The court gives all creditors notice and asks them not to touch the debtor until the case is over. Nowadays, bankruptcy courts often focus on creditors and attempt to provide them with some damage relief.