Unsecured Debt Relief for Seniors - Help and Assistance to Settle Debt

Although a percentage of debtors that belong to the elderly and the disabled are quite small, they still need help and assistance to settle their debts and start to live their lives in financial freedom. Debt settlement allows the seniors and the disabled to negotiate with the crediting firms to arrange a more comfortable payment scheme or agreeing on a lump sum, to settle an overdue debt. These debt relief methods can help you to decrease the overall debt owed by the debtor to 70%.

There are financial companies who still continue to chase advanced in age and the handicapped debtors. However, the senior citizens and the disabled are protected by law when it comes to these creditors.

Many seniors are living off savings or fixed income. And they have limited opportunities for increasing their income in order to pay down debt. This fact strengthens their negotiating position when managing debts because creditors can't realistically demand that the senior improve their earning power. In addition, these categories of people don’t need to preserve their credit rating. They have a lower lifespan and probably don't need to take out large personal loans, mortgages or auto loans.

Selling annuities, liquidating retirement plans and stock trading accounts can all be sensible debt management strategies for seniors. These assets will be liquidated in a bankruptcy. So it is better to try to preserve at least some of them before taking on more extreme measures. For most IRA and 401(k) plans, there are special hardship provisions allowing additional withdrawals for severe debt problems. Besides taking on a reverse mortgage on a house can be effective for seniors who own their own home and still have substantial debts.

It’s very important to underline that seniors and the disabled are in a better position to apply for charity care than most other categories of people. They should apply for any financial aid offered by the hospital where they may have debts. Besides they should contact Federal, state and local Health and Human Services Departments to get the assistance with medical bills. Most hospitals require that applications for financial aid be made within 6-12 months of treatment. Families with income below 200% of the Federal poverty level should also be eligible for Charity Care subsides according to the U.S. Department of Health and Human Services.

Social Security income and disability payments can't be garnished by creditor lawsuits. However, bank accounts can be frozen or seized. Bankruptcy is a difficult option for seniors or the disabled to make as they are unlikely to be able to rebuild their financial situation afterward. Often during personal bankruptcy individuals are able to keep their mortgage. If it is possible to declare bankruptcy and live with the assistance of family members, it may be a sensible choice.

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