9. Bankruptcy Options for Seniors
While often viewed negatively, bankruptcy can be a responsible financial decision for seniors who cannot reasonably repay debt. It can eliminate most unsecured debt such as credit cards and medical bills.
Types
- Chapter 7: Liquidation that wipes out most unsecured debt
- Chapter 13: Structured repayment plan over 3–5 years
Why Seniors Sometimes Choose Bankruptcy
- Protects Social Security benefits
- Stops harassing collectors and lawsuits
- Provides a fresh financial start
Speaking with a bankruptcy attorney can help determine whether this is the best last-resort solution.
