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Medical Debt and Retirement: A Senior’s Guide to Bankruptcy
Between 1991 and 2016, bankruptcy filings among individuals aged 65 to 74 increased by 204 percent. This huge increase is largely due to the rising costs associated with medical expenses. The cost of healthcare, including insurance premiums, deductibles, and out-of-pocket expenses, disproportionately impacts seniors who may have chronic illnesses, insurance coverage gaps, and fixed incomes.
Many Texas seniors are finding that their medical bills are turning their retirement years into a financial nightmare. Social Security payments are unlikely to keep up with medical costs, and while bankruptcy is a choice few seniors want to consider, it can help you protect your assets while regaining financial stability in your golden years. Consulting with a knowledgeable Dallas, TX bankruptcy lawyer can help answer your questions and determine whether bankruptcy is the best option for you.
When To Choose Chapter 13 Over Chapter 7 Bankruptcy?
If you have a great deal of debt, bankruptcy can offer a fresh start. But when it comes to choosing whether to file Chapter 7 or Chapter 13 bankruptcy, the decision depends largely on the circumstances of your case, particularly the type of debt you have. The reason for this is that both Chapter 7 and Chapter 13 help people get rid of debt, but they work in very different ways.
Understanding when Chapter 13 might be the better choice is key to protecting your assets and planning for a better financial future. An experienced Wise County, TX bankruptcy attorney can advise you on the most appropriate route for you.
What Is the Difference Between Chapter 13 and Chapter 7 Bankruptcy?
Chapter 7 is often called the "liquidation bankruptcy" because at the end of the process wipes out most unsecured debts (such as credit cards or medical bills), usually within three to five months. However, it may require you to give up certain non-exempt assets to pay creditors.
Can Bankruptcy Help With Payday Loan Debt?
Most people turn to payday loans during financial emergencies, expecting to repay them quickly with their next paycheck. But when these short-term loans lead to a recurring cycle of debt with crushing interest rates, you might find yourself trapped under mounting debt. If this sounds familiar, Chapter 7 bankruptcy might offer relief. An experienced Dallas, TX bankruptcy attorney can advise you on your rights and help determine if filing for bankruptcy is the right solution for your payday loan debt.
Why Are Payday Loans Problematic?
While they are marketed as quick solutions for people facing temporary financial shortfalls, payday loans come with extremely high interest rates. The typical payday loan has an APR of over 300. This means that by the time payday arrives, you may find yourself unable to repay the full loan amount plus fees.
How Does a Bankruptcy Attorney Get Paid?
It is safe to say that if you are filing for bankruptcy, or thinking about it, you are probably experiencing serious financial hardship and owe too much debt for comfort. You may be thinking that the last thing you can afford right now is an attorney to handle your bankruptcy case. You may also be curious about how bankruptcy attorneys get paid, given that everyone who files for bankruptcy is in a similarly bad financial situation.
The answers to these questions depend on the type of bankruptcy you are filing, but in general, filing for bankruptcy can be cheaper than continuing to accrue debt, and there are manageable ways to pay for your attorney. You should bring these questions up during a complimentary consultation with your Arlington, TX bankruptcy attorney, who can explain the costs of bankruptcy and legal representation.
Who Is a Good Candidate for Chapter 13 Bankruptcy in Texas?
When most people unfamiliar with bankruptcy think about what it means, they tend to imagine the specifics of Chapter 7 bankruptcy. After all, this is the most common type of bankruptcy, in which a debtor liquidates their nonexempt assets to pay back creditors and in exchange gets many of their debts discharged. Chapter 7 is a good option for many people, but it may not be the right option for everyone. Chapter 13 bankruptcy is also a powerful tool for individuals facing significant debts. For some, Chapter 13 might be the best choice, and for others, it could be the only option available. A knowledgeable Wise County, TX Chapter 13 bankruptcy attorney can review your financial situation and advise you on what type of bankruptcy might be best to file for.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows individuals to make a court-approved payment plan to repay their debts over three to five years. Chapter 13 is sometimes called the "wage earner’s bankruptcy" because it tends to be a good fit for people with a steady income to make the monthly payments.
How Should I Choose a Bankruptcy Attorney?
If you face financial troubles and significant debt, you may be considering bankruptcy. In this stressful time, you will have some difficult decisions to make, about whether to file for bankruptcy at all, what chapter bankruptcy to file, and other smaller but no less significant concerns. One important decision you will make is what bankruptcy attorney to hire. Given all that is at stake, this may also be a difficult decision to make, especially when you want to maximize your chances of success by working with a good attorney but you do not know where to start. A knowledgeable Fort Worth, TX bankruptcy attorney can answer any questions you may have.
Key Traits to Seek in Your Bankruptcy Lawyer
Experience
Bankruptcy is a complex and somewhat "niche" area of law, and a good bankruptcy lawyer will have plenty of specific experience in this area of law, in and outside the courtroom. They should have experience handling bankruptcy cases like yours, whether you file for Chapter 7, Chapter 13, Chapter 11, or another type of bankruptcy. At the same time, they will be able to advise you on other areas of law that may be affected by your bankruptcy, such as divorce and bankruptcy, or tax issues and bankruptcy. They will also be able to advise you on alternate solutions to debt problems, like foreclosure defense.
What Should I Know About Mortgage Modifications?
If you are struggling to make your mortgage payments, there are legal avenues that can offer you relief. One such avenue is a loan modification. Successfully negotiating a loan modification with the owner of the loan can not only keep your home out of foreclosure–with all the peace of mind that brings–but also lessen your financial burden. Yet getting a loan modification is not a cut-and-dry process, nor is it certain that you will be granted one. If you are considering this, speak with an experienced Dallas, TX mortgage modification attorney to understand your options.
What Is a Loan Modification?
When you receive a loan modification, the lender agrees to change the terms of the loan, usually by reducing monthly payments, lowering the interest rate, extending the term of the loan, or forgiving some of the principal you owe. Any late fees are usually added to the principal in a loan modification.
What Will My Life Look Like After Filing Bankruptcy?
If you are struggling to pay overwhelming debt, you may be thinking about filing for bankruptcy. From debt relief to an automatic stay that prevents creditors from harassing you, there are several advantages to filing Chapter 7 or Chapter 13 bankruptcy. Still, you may have misgivings and wonder what your life will look like after you file.
Filing for bankruptcy is a major decision, and finding out the potential consequences is smart. One of our knowledgeable Parker County, TX bankruptcy attorneys can answer your questions and help you decide if this form of debt relief is right for you.
Can I Get Past the Guilt of Not Honoring My Financial Obligations?
Many people have a moral dilemma about filing for debt relief through bankruptcy. You may have borrowed money through loans, credit cards, or other methods with the full intention of repaying what you owe. It is natural to feel uneasy about not being able to meet your financial obligations, but remember that many Americans are in similar situations.
Benefits of Declaring Bankruptcy
Bankruptcy can sometimes get a bad reputation. Some people have a perception that it is a negative process that will destroy your credit and that only irresponsible people file for bankruptcy. These misconceptions are not accurate; hard financial times can happen to anyone, triggering a buildup of debt that is impossible to get out from under.
The truth is that these negative ideas about bankruptcy can hurt individuals and families who would otherwise turn to bankruptcy as a way to get a fresh financial start and clear their debts. To counter that viewpoint, it can be helpful to understand some of the benefits of filing for bankruptcy that can make your life better in bankruptcy and beyond. Discussing these concerns with an experienced Dallas, TX bankruptcy attorney can help.
You Get to Keep Your Assets
Certain important assets are exempt from bankruptcy, meaning that they do not become part of the bankruptcy estate and you get to keep them. In fact, Texas has one of the most generous bankruptcy exemptions, including a homestead exemption that allows you to keep unlimited equity in your home in certain circumstances. If you file for bankruptcy in Texas, you will likely also get to keep your car and other personal property.
Is It Better to File For Bankruptcy or Divorce First?
Sometimes life throws more than one challenge our way at a time. Such is the case if you are facing the difficult prospect of having to file for bankruptcy and divorce around the same time. Yet this can happen more often than you would think, given the impact of financial struggles on marriages and the heavy financial toll divorce can take.
From a purely legal standpoint, there are important considerations to keep in mind when deciding whether to file for divorce or bankruptcy first. An experienced Wise County, TX bankruptcy attorney can advise you on your options for filing bankruptcy or divorce, taking into consideration your debt, property, whether your divorce is amicable or not, and other factors.
How Can Divorce Affect Chapter 7 Bankruptcy?
Because both Chapter 7 bankruptcy and divorce concern the division or distribution of assets, what happens in divorce can affect bankruptcy and vice versa. For example, if a spouse files for bankruptcy some of your joint assets will become part of the bankruptcy estate, meaning that they will not be available for division between the spouses in the divorce.
From our office in Arlington, we serve clients throughout Tarrant County, Dallas County, Parker County, Denton County, Wise County, Dallas, Fort Worth, Irving, Grand Prairie, Bedford, Keller, Euless, Richland Hills, North Richland Hills, Mansfield, Coppell, Kennedale, Las Colinas, Burleson, Azle, Saginaw, Haltom City, Watauga, Southlake, Benbrook, Colleyville, Grapevine, Crowley, Aledo, Roanoke, Trophy Club, Carrollton, Farmers Branch, Richardson, and Hurst, as well as other communities across North Texas.
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