Many seniors—perhaps after a lifetime of responsible spending and financial planning—find themselves in debt later in life. Typically, an upsurge in medical bills and related expenses causes seniors to fall behind on payments; because most seniors are on a fixed income, they sometimes lack the additional resources needed to pay for ongoing treatment or hospitalizations. With constant harassment from creditors and worries about liens and other aggressive collections actions, instead of enjoying your retirement you may end up even more stressed about money than ever before.
Fortunately, if you are a senior struggling to pay your medical bills, you can quickly and easily eliminate your medical-related expenses with Chapter 7 or Chapter 13 Bankruptcy in Minnesota.
For more information on how Minnesota Bankruptcy can help you erase your medical debt and to find out how filing for bankruptcy will affect your retirement accounts and Social Security benefits, read on!
mn Bankruptcy aND medical debt
Some good news for seniors: your medical-related debt is eligible for discharge under bankruptcy. Because medical debt is unsecured debt, it can be discharged whether you file a Chapter 7 or Chapter 13 bankruptcy case.
In a Chapter 7 bankruptcy, you can eliminate your medical bills, credit card debt, and other outstanding balances in as little as 90 – 120 days from the date your bankruptcy case is filed with the court. If you file Chapter 13, you will be able to repay a portion of your debt stretched out over a 3 – 5 year period; at the end of the repayment period, your remaining unsecured debt is discharged.
It should be noted that if possible, it is best to complete any current medical treatments before filing for bankruptcy, so that the most possible debt can be discharged at once.
mn bANKRUPTCY aND retirement accounts
When it comes to retirement accounts, many seniors worry that they will lose their savings once bankruptcy is filed. But, not to worry— 401(k) and 403(b) defined contribution retirement accounts and defined-benefit pensions, such as union pensions are by definition not part of a bankruptcy estate that is administered by the bankruptcy trustee. IRAs are exempt assets up to $1,283,025. And retirement annuities are exempt up to the amount needed to support the bankruptcy debtor and any dependent of the debtor. And Social Security Benefits are completely exempt, no matter what the amount of the benefit is. That means you can erase your debt and get a new start without your hard-earned retirement funds being touched by the court!
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One advantage of Filing Bankruptcy in Minnesota as a senior citizen is that you are much more likely to meet Chapter 7 income requirements. When calculating whether or not you are eligible for total debt discharge under Chapter 7 or a repayment plan under Chapter 13, the court does not consider your Social Security benefits when applying the means test: this means qualifying for Chapter 7 has never been easier!
wORKING wITH a mINNESOTA bANKRUPTCY lAWYER fROM Kain & Scott
At Kain & Scott, we understand that our older clients have special needs and issues: we offer a variety of convenient services to make filing for bankruptcy easy, fast, and affordable for seniors.
Our legal team of Minnesota Bankruptcy Lawyers understands that our older clients may have mobility issues or are currently residing in senior care facilities, making it difficult to have in-person consultations at our office; that’s why we proudly offer a free no-obligation bankruptcy consultation for all our clients remotely, via telephone, Skype, or Facetime.
We also know that completing piles of paperwork is not always easy for seniors who struggle with their eyesight or dexterity. And some seniors struggle with hearing over the telephone, which makes contacting creditors and gathering information needed for the bankruptcy petition extremely difficult. With Kain & Scott, your bankruptcy specialist will complete your paperwork for you and file your petition with the court.
Minnesota seniors are often on a fixed income so we make sure our services are affordable as possible; with added bonuses like a free initial consultation, our Free 90 Day Credit Repair Program, and 100% Money Back Guarantee, you can be confident that your bankruptcy won’t cause you even more debt.
ScheduliNG your free iNITIAL consultation
For over 50 years, we have been helping clients of all ages tackle their debt and get a fresh financial start. If you’re a senior who is struggling with medical or other debt, it’s never too late to discharge your unsecured debt. You can schedule your free initial consultation with the friendly and knowledge Minnesota Bankruptcy Attorneys at Kain & Scott by clicking the link below.
With just some basic information about your assets and debts, your bankruptcy specialist can determine which type of bankruptcy is right for you, collect the information needed for your paperwork, and file your petition with the court within days to get your debt-free new beginning as quickly as possible.
