In Aurora, if you are a senior citizen and you are considering filing a Chapter 7 or Chapter 13 bankruptcy, you should always speak with a reputable bankruptcy lawyer first. In today’s blog, we’ll discuss some important topics an elderly person should be aware of before filing bankruptcy in Colorado.
Medical Bills in Littleton Chapter 7 or Chapter 13 Bankruptcy
As we get older, it is not uncommon to acquire large medical bills due to health issues. In some unfortunate cases for the elderly, they have acquired medical debt and would like to file bankruptcy. If you are an elderly person and you qualify to file a Chapter 7 bankruptcy in Littleton, you can often discharge your medical debt. Medical debt is considered an unsecured debt. In exchange for discharging medical debt and other unsecured debt in a Chapter 7, you will give up nonexempt property to pay creditors. Note that only medical debt which has been incurred before a Chapter 7 bankruptcy can be discharged. Medical debt incurred after filing cannot be discharged. If filing a Chapter 13 bankruptcy, a portion of your medical debt will be paid off during a 3-5 year repayment plan. Anything remaining after completing the repayment plan will be discharged.
Homestead Exemption in Centennial: Is Your Home Protected in Bankruptcy?
If you are a senior or an elderly person in Centennial, it’s important to know whether you can protect any equity in your home. If you do not have any equity or you can exempt all of the equity in your home, you can keep your home. In Colorado, the Homestead Exemption listed under C.R.S. 38-41-201, will allow you to exempt your home equity up to a certain amount. As an elderly or disabled person (including a spouse, disabled or elderly spouse or elderly or disabled dependent) you can exempt a larger amount of equity. Under C.R.S. 38-41-201, every homestead in Colorado will be “exempt from execution and attachment arising from a debt, contract or civil obligation not exceeding in actual cash value in excess of any liens or encumbrances on the homestead property in existence at the time of any levy of execution thereon:
- The sum of seventy-five thousand dollars if the homestead is occupied as a home by an owner thereof or an owner’s family; or
- The sum of one hundred five thousand dollars if the homestead is occupied as a home by an elderly or disabled owner, an elderly or disabled spouse of an owner, or an elderly or disabled dependent of an owner.”
An “elderly owner”, “elderly spouse”, or “elderly dependent” includes an owner, spouse, or dependent who is sixty years of age or older.
Retirement Accounts in Parker Bankruptcy: Many Retirement Accounts Are Exempt
As an elderly person in Parker, you may also be wondering about how your retirement accounts will be treated in a Chapter 7 or Chapter 13 bankruptcy. Fortunately, most retirement accounts are exempt. Retirement accounts such as 401(k)s, 403(b)s, or IRAs / Roth IRAs or pension accounts, can be exempt up to a certain amount. What this means is that they will be protected should you choose to file a Chapter 7 or Chapter 13 bankruptcy.
Greenwood Village Bankruptcy Lawyer for Elderly Citizens: Call Barry Arrington
If you are an elderly person and you have more questions about how filing a Chapter 7 or Chapter 13 bankruptcy in Greenwood Village will affect you, call bankruptcy attorney Barry Arrington today. Barry has been helping many people navigate through the complexities of a Chapter 7 or Chapter 13 bankruptcy and cares about getting you to a better place financially. Call Barry today to set up a free initial consultation and be on your way to your best, fresh start.