While Chapter 7 or Chapter 13 bankruptcy could possibly offer seniors ways to manage financial obligation difficulty, it is important to know very well what bankruptcy can and should not do. For most seniors, particular problems appear associated with house ownership, Social safety, and your retirement funds. Plus some seniors could find that their earnings and assets are protected also without filing for bankruptcy.
Here is a rundown of some of the dilemmas seniors that are affecting apply for Chapter 7 or Chapter 13 bankruptcy.
Kinds of Bankruptcy: Chapter 7 and Chapter 13
For many seniors considering bankruptcy, there are two main choices: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy. In Chapter 7 bankruptcy you discharge most or your debts and start nonexempt assets to your bankruptcy trustee who can offer the house and make use of the profits to cover creditors. Chapter 7 can be acquired to those whoever earnings is underneath the median earnings in their state or even for those that pass an easy method test that indicates that they don’t have sufficient disposable earnings to invest in a Chapter 13 payment plan. Continue reading