Filing for Bankruptcy After Retirement: What You Should Know

If you are struggling with debt after retirement, you may be considering the possibility of filing for consumer bankruptcy. Indeed, you can incur many unexpected and costly expenses after retirement, including medical bills or costs of long-term care. For many seniors, personal bankruptcy can be daunting. You may have concerns about losing valuable property and retirement benefits, and you might be worried about whether or not you will need to go back to work. There are many specific questions that seniors who are thinking about Chapter 7 or Chapter 13 bankruptcy should consider, and we want to go over some of those key issues with you concerning U.S. bankruptcy law.

Will Consumer Bankruptcy Benefit You?

The first thing you should consider if you are an older adult or at retirement age is whether filing for consumer bankruptcy will be beneficial to you. There are many people in a variety of financial situations for whom personal bankruptcy can be beneficial. However, there are a couple of scenarios in which it might not make sense to file for personal bankruptcy during retirement.

First, if you have a substantial amount of assets that are not exempt and are likely to be liquidated in a Chapter 7 bankruptcy, or for which you would have very high monthly payments as part of a Chapter 13 bankruptcy plan, then personal bankruptcy might not be the best option for you. However, you should have an experienced Oak Park bankruptcy attorney assess your case to help you determine what your best options might be. On the opposite end of the spectrum, if you do not have any assets or only have what are known as judgment-proof assets that cannot be garnished, then it might not be worth going through a consumer bankruptcy case since the creditors who are contacting you ultimately will not be able to obtain anything from you. At the same time, you should certainly seek advice from a bankruptcy lawyer.

Is Your Debt Dischargeable?

Before you move forward with a bankruptcy case during retirement, you will want to make sure that your debt is dischargeable. You should work with a bankruptcy lawyer who can assess your debt and ensure that you will be eligible for a discharge if you file for personal bankruptcy.

Do Most of Your Assets Qualify for Illinois Exemptions?

If you are not in one of the above categories, the next question you should consider is whether most or a majority of your assets qualify for Illinois bankruptcy exemptions—and many of your assets are likely to be exempt. For example, retirement benefits and Social Security benefits you receive are likely to be exempt (and cannot be liquidated or considered as part of a bankruptcy case), as are most disability benefits. You can also exempt up to a certain amount of personal property and monthly income.

Contact an Oak Park Bankruptcy Lawyer

If you have questions or concerns about filing for bankruptcy after you have retired, you should get in touch with our Oak Park bankruptcy attorneys for assistance. Contact the Emerson Law Firm today for more information.



See Related Blog Posts:

What Should I Expect After I File for Chapter 7 Bankruptcy?

Bankruptcy and Disability Benefits: What You Should Know




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