Eric Klein, a South Florida lawyer concentrating in bankruptcy, divorce, real estate and family law, was recently quoted in an article published in the New York Times focused on how bankruptcy can help seniors protect assets. The article, Bankruptcy Can Help Seniors Protect Assets by Constance Gustke, discussed ways in which older Americans can benefit from declaring bankruptcy rather than allowing a downward financial spiral to continue if debt is piling up.
Since retirement income and savings are usually untouchable when paying back creditors under bankruptcy law, the article explained that filing bankruptcy may be one way to regain financial health for retirees and soon-to-be retirees. Additionally, retirees can usually avoid losing their homes through a homestead exemption. As Eric Klein explains in the article, “this is a way to keep your estate intact”, since the homestead exemption protects the equity of a principal residence in a bankruptcy.
Other recommendations for handling mounting debt were also provided within the article, such as trying to negotiate with creditors or even refusing to pay outstanding debt. Cautions about dipping credit scores and other effects of bankruptcy were also explained.