Bankruptcy may be the best option for seniors

According to USA Today number of American retirees filing for protection under the bankruptcy code has risen drastically in the recent years. USA Today reports that people 65 and older are filing for bankruptcy are the fastest growing segment of the population filing for bankruptcy. This phenomenon is attributed to the rising cost of health care, reduction in income and increase in cost of living.

Based on the article, retirees see the benefit in bankruptcy in that they will have more money to dedicate to their lifestyles and especially since Social security and retirement accounts are exempt from creditors. Additionally, many states, such as California, “homestead exemptions” which protects the equity that those 65 and older have in their homes. This means that senior citizens can keep their homes and still file for protection under Chapter 7 or 13. What’s more, many people avoid filing for bankruptcy due to the negative impact it may have on their credit score. However, credit scores are not a great concern for seniors because they will in all likelihood not be purchasing big items such a car or a home. Still, according to USA Today for every one senior who is filing for bankruptcy, there are two that should be filing and are not!

Our Orange County bankruptcy attorneys know the importance of living a worry free life, especially in the golden years of our lives. By contacting our office we can explain all the myths about bankruptcy away for you and after a brief evaluation determine whether you are a good candidate to file for bankruptcy or not. We can also provide you information on the current homestead exemptions in California. Call us at 714-542-2188 and ask to speak to our experienced Santa Ana bankruptcy attorney.

Will healthcare benefits be non-dischargeable?

Republicans will soon take over the House of Representatives. Dan Lundgren of California was on Chris Mathews today and he seemed to indicate that Republicans would like to make changes to the Bankruptcy Code so that debtors cannot discharge debts they owe for medical services received. This would mean that filing for protection under Chapter 7 or Chapter 13 of the Bankruptcy Code will no longer allow debtors to list amounts owed for medical services received, i.e. surgeries, emergency services, doctors’ visits, medicine, etc., and have them discharged (if otherwise qualified to receive a discharge.) Our Orange county chapter 7 attorney can help you forever cancel any medical bills that you owe before any potential changes to the current bankruptcy laws.

According to CNN.COM in 2009 there were over 1.5 million consumer bankruptcies in the United States. Of these 1.5 million filings 62% are due to debtors not being able to pay their medical debts. According to cnn.com, those filing for protection under Chapter 13 or Chapter 7 bankruptcy were mostly middle-class and homeowners. According to the report many Americans are simply one illness from bankruptcy. This is due to the fact that when seriously ill many people lose their jobs and still have to incur medical costs. Our Garden Grove bankruptcy attorney, Rachelle Shakoori, has advised many clients who were forced to consider bankruptcy due to their medical bills. Call us today to setup a free consultation with an experienced and honest Anaheim bankruptcy attorney.

Our offices are conveniently located near South Coast Plaza close to Garden Grove, Costa Mesa, Huntington Beach, Fullerton, Fountain Valley and other Orange County cities. For advice about Orange County criminal defense or DUI attorneys please contact our sister firm at (714) 542-2188.

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