Seymour's Blog

"How Old Is Too Old to File for Bankruptcy?" 

Believe it or not, the age group that is now having the greatest percentage rise in bankruptcy filing is the senior citizen group. Within the past week, I had a very nice eighty one year old gentleman in my office. He had worked very hard all of his life so that he could enjoy his golden years.

Why was he in my office? He came because he had $50,000 in credit card debt, and he didn’t know what to do. He was also a home owner, and the last thing in the world that he wanted to have happen to him was to somehow lose his house, because he couldn’t pay his credit card debt.

There is definitely no age limit on bankruptcy filing. As long as you are eighteen years of age, you may file a Chapter 7 or Chapter 13 bankruptcy.

This eighty one year young gentleman (I say young because he really had an extremely great attitude about everything, despite his financial problems, and I am sure  many of you have heard the saying “Attitude is everything”) felt so much better when I told him we could deal with his credit card debt, and he would not at all be in jeopardy of losing his home.

Up to that point, he had been paying about $1,000 a month toward his credit card bills, and he was hardly even putting a dent in the balance. Why? Because like so many other hard working honest people in this country, he was being charged an excessive interest rate on his credit card debt.

I have seen interest rates as high as 32.99% on credit card debt. Can you imagine that if you put your money in the bank, and earned 32.99% per year, you would double your money in just a little over two years?

Maybe the opposite of that is also true. If you are paying 32.99% interest on your credit card debt, how long do you think it will take for your debt to double if you don’t make any payments on your debt? That is exactly why I have clients come to me who have charged up maybe $2,000 on their credit cards, and they are being sued for $5,000. They don’t understand why.

Here is the bottom line. If you have substantial credit card debt, and if you think you are in jeopardy of losing your home because of your credit card debt, speak to an attorney who knows how to handle financial problems.

I suspect that close to two million people will be filing for bankruptcy in 2010. It is a legal, moral, ethical, and honorable way to wipe out your bills and get a fresh financial start.

Why don’t you do a Google search on all of the famous people over the years who have filed for bankruptcy? You will be amazed to learn that presidents of the United States, and presidents of huge, well known businesses and corporations have filed for bankruptcy and then went on to be extremely successful once they wiped the slate clean and received their honorable discharge from their debts.

You can hold your head up high knowing that in this country, our founding fathers provided in the United States Constitution that our citizens could start fresh and celebrate their victory when they legally wipe out their debts.

No matter what your age, if you feel that you are in over your head, talk to an attorney about the pros and cons of bankruptcy. Debt relief and stress relief could be waiting for you just around the corner.

Knowledge is power. Learn your rights and learn your legal options. Then, decide what is best for you.