Don’t worry—if you’re retired but owe creditors money, you have certain protections available to you. If creditors are hounding you for payment, you do have some options. It could even be a good idea to explore debt avoidance, given your circumstances! Or, you may be better off filing bankruptcy.
What Options Do You Have if You Owe Money to Creditors But Are Retired
Let’s walk you through your options:1) I don’t own a home, and I don’t own a vehicle worth more than $5,000.
- Your best option may be debt avoidance.
- If you own very little and your only source of income is social security, you are what creditors call “judgment proof.”
- That means creditors can’t garnish your bank account or try to take your property!
- If you call Steffens Law Accident Injury Lawyers for help, we can take care of your creditors and show them it isn’t worth their time to file a lawsuit.
2) I own a home and have some outside income, and can exempt my property.
- Your best option may be bankruptcy.
- A bankruptcy will not only protect your property, but it will also annihilate your creditors and their endless calls.
- Bankruptcy will give you protection against your creditors.
3) I own my home outright; I own a vehicle worth over $10,000; (or) I can’t exempt other property.
- Your best options are probably a reverse mortgage, or debt settlement.
- In the above cases, a bankruptcy won’t be able to completely protect you from a creditor trying to take your property. (You’ll have to pay something.)
- A reverse mortgage, or negotiating debt settlement, will prevent the creditor from taking your property.