Navigating Bankruptcy For Seniors In Monmouth County, NJ

In this article, you will discover:

• Whether social security and retirement funds are protected when you file for bankruptcy
• If filing for bankruptcy will impact your eligibility for Medicaid or long-term care
• Why working with an attorney is important for seniors considering filing for bankruptcy

Are Social Security And Retirement Funds Protected When Seniors File For Bankruptcy?

Yes, social security and retirement funds are protected. There’s an exemption that covers 100% of your pension and any other retirement benefits, such as a 401(k) or an IRA. Any income you receive after filing for bankruptcy, including social security, is also exempt from bankruptcy.

Can Unpaid Medical Bills And Credit Card Debt Affect Seniors Considering Bankruptcy?

There’s no difference between seniors and regular debtors when it comes to medical bills or credit card debt. No matter your age, you are still filing for bankruptcy because you have credit card debt or medical bills. Depending on the type of bankruptcy you file, these debts would be discharged.

In a Chapter 7 bankruptcy, debts are fully discharged. In a Chapter 13 bankruptcy, depending on your plan, you may have to pay back a portion of those debts.

Attorney Paul Mirabelli is a seasoned lawyer based in Hazlet, NJ, who has helped countless clients just like you navigate the intricacies of bankruptcy law. With decades of experience, he is prepared to assist seniors with filing for bankruptcy and ensuring their retirement income and Medicaid eligibility are protected.

Still have questions? Ready to get started? Contact Paul N. Mirabelli, Esq. today to schedule an initial consultation.

Can Filing For Bankruptcy Impact My Eligibility For Medicaid Or Long-Term Care?

Filing for bankruptcy won’t affect Medicaid eligibility for long-term care. It may affect your ability to get long-term care insurance, but it won’t affect your Medicaid rights. You can’t discharge a Medicaid lien through bankruptcy, however, as these liens are one of the exemptions to discharge.

Why Is Working With A Bankruptcy Attorney Important For Seniors?

As with any debtor, you need to consult with a lawyer to ensure you qualify for bankruptcy in general and ensure that you qualify for a Chapter 7 bankruptcy more specifically.

If you don’t qualify for a Chapter 7 bankruptcy, either because you have assets not protected through an exemption or your income is too high, you would have to file a Chapter 13 Bankruptcy.

An attorney can perform a means test to determine whether you have eligible disposable income that’s available to your creditors. If you take the means test and have disposable income, you won’t qualify for Chapter 7 bankruptcy. In that case, you must file a Chapter 13, and you must pay back at least a portion of your debt.

How Do You Help Older Clients For Bankruptcy And Address Their Retirement-Related Fears?

I tell clients that any kind of pension or retirement benefit they have, whether a 401(k), IRA, 403(b) or annuities, would be 100% exempt. Their retirement benefits are protected, even if they file for bankruptcy because there are sufficient bankruptcy exemptions that would shield them from their creditors.

Still Have Questions? Ready To Get Started?

For more information on seniors filing for bankruptcy in Monmouth County, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (732) 264-3880 today.