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.