Sunny Arizona is a popular destination for retirees and senior citizens to settle in an effort to escape the high cost of living, taxation, and cold weather that so much of the country faces. Despite the relatively inexpensive living costs, however, many seniors find themselves battling either skyrocketing medical costs or plummeting retirement benefits, and wonder just as you did—is there a solution?
For many seniors, bankruptcy can be a very viable option to eliminate your debt and placate your creditors. Many retirement accounts are exempt in both Chapter 7 and Chapter 13 bankruptcies, so you are able to keep the money that you worked your entire adult life to save.
Another benefit to senior citizens in the Arizona bankruptcy filing process is that social security benefits are not counted as income. This means that when filling out your means test, the form that compares your income and your expenses to determine your disposable income amount, any benefits you receive under the Social Security Act are excluded from income calculations. While a portion of your benefits may be included in your disposable income, it cannot be considered as income to disqualify you from a Chapter 7 bankruptcy.
While bankruptcy can be a very valuable financial tool for senior citizens and retirees overwhelmed with debt in Arizona, there are some very important things to consider before filing. A large portion of older residents have significant equity in their home, and if it is greater than the Arizona homestead exemption, your creditors could use that equity as payment.
If you are a senior citizen overwhelmed with debt, you do not have to fight your creditors alone. Let the Phoenix bankruptcy lawyers at Curry, Pearson & Wooten help you eliminate your debt and protect what you have worked so hard to earn. Call us today at 602-258-1000 to find out how.