Top Questions Seniors In West Virginia Have About Bankruptcy

In this article, you can discover…

• If social security income is protected in a Chapter 7 bankruptcy case.
• If you will lose your retirement savings after filing for bankruptcy.
• How retirees on a fixed income can afford bankruptcy.

Is Social Security Income Protected In A Chapter 7 Bankruptcy Case?

Any income you receive from Social Security, whether it’s retirement benefits, disability benefits, or related payments like adoption or foster care subsidies, does not count as income when determining your eligibility for bankruptcy.

Social security income is essentially protected in both Chapter 7 and Chapter 13 bankruptcy cases. It will not be considered as part of your income calculation, nor can it be taken to pay creditors.

It will not affect your eligibility to file bankruptcy, either.

Will I Lose My Retirement Savings If I File For Bankruptcy As A Senior?

In most cases, you will not lose your retirement savings if you file for bankruptcy.

Tax-deferred retirement accounts such as 401(k)s, IRAs, thrift savings plans (for federal employees), and traditional pensions, especially those held by state or government workers, are generally protected and secure under the bankruptcy code. Retirement funds are one of the most strongly protected assets in bankruptcy.

For example, if you have $100,000 in credit card debt and $100,000 in a qualified retirement account, I can typically help you eliminate the debt while protecting every dollar in your retirement savings.

Can Seniors Stop Harassing Debt Collection Calls By Filing Bankruptcy?

Absolutely. For seniors who are being harassed by constant debt collection calls, filing for bankruptcy can provide immediate and much-needed relief.

One of the most powerful protections in bankruptcy is something called the automatic stay. As soon as you file, the bankruptcy court issues this stay, which acts like a legal restraining order against your creditors. It will immediately stop most collection efforts, including phone calls, letters, lawsuits, wage garnishments, and referrals to collection agencies.

Attorney David Hinkle is an experienced bankruptcy attorney based in West Virginia who has helped countless seniors like you navigate through bankruptcy with ease. With his compassion and decades of experience, he is well-equipped to help you get on the right track to financial recovery.

Still have questions? Ready to get started? Contact Hinkle Law, PLLC today to schedule an initial consultation.

You Don’t Have to Face This Alone. Let’s Talk About Your Options - (304) 596-2423

How Can Retirees On Fixed Incomes Afford Bankruptcy Protection?

When most people say they’re on a fixed income, they usually mean Social Security, disability, or a pension that covers just the basics or sometimes just barely the basics. Affording bankruptcy in those situations can be a challenge, but it’s far from impossible. In fact, many of my clients are retirees or individuals on fixed incomes.

One of the most important things to understand about bankruptcy is that it’s more than just a legal process; it’s an investment for your future. If it costs you $2,000 to hire a bankruptcy attorney and you’re eliminating $50,000 or more in debt, that’s a return on investment that’s hard to beat. The challenge, of course, is that people struggling with debt usually don’t have that kind of money readily available.

That said, there are several options to help make the process more affordable:

• Fee Waivers: The bankruptcy court may waive the filing fee for low-income individuals, especially if your income falls below the poverty guidelines.
• Discounted Attorney Fees: Many attorneys, myself included, offer discounted rates for seniors or those on fixed incomes.
• Budgeting Strategies: If you’re still making minimum payments on credit cards or other unsecured debts and plan to file, we may advise you to stop making those payments and redirect the money toward saving for your bankruptcy fees.
• Help From Friends or Family: Some clients are able to get assistance from loved ones who understand the long-term benefit of getting out from under a mountain of debt.
• Payment Plans: While bankruptcy attorneys cannot accept payment after a Chapter 7 is filed, we can often set up pre-filing payment plans to make the process more manageable.

Ultimately, the biggest hurdle is usually getting the upfront fees together. But once people understand how much debt we can help them discharge, most are motivated to find a way, and many of them do.

Attorney David Hinkle is an experienced bankruptcy attorney based in West Virginia who has helped countless seniors like you navigate through bankruptcy with ease. With his compassion and decades of experience, he is well-equipped to help you get on the right track to financial recovery.

Still have questions? Ready to get started? Contact Hinkle Law, PLLC today to schedule an initial consultation.

You Don’t Have to Face This Alone. Let’s Talk About Your Options - (304) 596-2423

Can I Keep My House If I’m Retired And Behind On Mortgage Payments?

Yes, you can keep your house even if you’re retired and behind on mortgage payments, especially by filing for Chapter 13 bankruptcy.

Chapter 13 bankruptcy allows you to set up a payment plan to catch up on your missed payments over time, while also stopping any foreclosure proceedings through the automatic stay.

While Chapter 13 sometimes gets a reputation as the bankruptcy people try to avoid, the truth is that it can be one of the most effective and powerful tools to help you save your home. I’ve helped many clients, especially retirees, use Chapter 13 to stop foreclosure and keep their homes even when they were several months behind on payments.

How I Advise Seniors On Fixed Incomes Who Are Considering Bankruptcy

The advice I give to seniors on fixed incomes who are considering bankruptcy isn’t all that different from what I’d tell anyone else. We examine income, assets, and debt to develop the best plan moving forward. That being said, there are some unique challenges that seniors face, which I encounter frequently.

For example, many seniors on a fixed income often don’t have an issue qualifying for bankruptcy based on their income. The real challenge comes when they own a home that’s paid off or has significant equity. In West Virginia, the amount of home equity you can protect in a Chapter 7 bankruptcy is limited, and sometimes, the allotted amount is just not enough to safeguard a fully paid-off home.

In those situations, I may recommend a Chapter 13 bankruptcy instead, which can protect their home but may require a monthly payment plan. Unfortunately, it can be a financial hardship for someone with limited income. That situation can leave seniors feeling stuck because they have done everything right by paying off their home, but now find themselves blocked from getting meaningful debt relief.

The good news is that I work with seniors every day and have extensive experience navigating the legal landscape of bankruptcy, especially for individuals on a fixed income. I’m not afraid to put in the time and energy needed to get you the relief you need.

Still Have Questions? Ready To Get Started?

For more information on senior bankruptcy in West Virginia, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (304) 596-2423 today.