Many individuals of any age can face financial difficulties. Older Ohio residents are just as susceptible to having a hard time making ends meet as individuals of a younger age. Some older parties may suffer due to medical expenses or other issues that they have had to contend with, and they may consider using retirement funds before filing for bankruptcy. However, bankruptcy could potentially be a better alternative for dealing with debt than using such funds.
Typically, retirement funds are not affected when a person files for bankruptcy. Therefore, parties normally still have those funds available even after going through the bankruptcy process. Leaving such accounts untouched can be particularly helpful for older individuals as they would have less opportunity to rebuild their funds if they were to become depleted.
If a party is considering bankruptcy, they may wonder whether Chapter 7 or Chapter 13 could be right for them. The specific circumstances of their situations will play a role in determining which type of bankruptcy fits their circumstances. Individuals with low income and/or few assets may be better suited for liquidation under Chapter 7. Parties with a higher income or more assets may qualify for Chapter 13, which works with a court-approved repayment plan.
It is important for individuals, especially those close to retirement age, to understand that they have options. Some Ohio residents may think it is better to use certain funds rather than opting for bankruptcy, but learning more about the process could shed new light on the option. Overwhelming debt can be a great burden, but parties may find out that they qualify for certain debt relief options.
Source: elpasoinc.com, “Bankruptcy can help seniors protect assets“, Constance Gustke, June 1, 2015
