The economy in Michigan, increased healthcare costs and reduced medical benefits from a declining automotive industry, and the threat of foreclosure may cause senior citizens to consider Bankruptcy during their retirement years. Many senior citizens do not want to lean on thier children during these tough economic times – because their children are having financial problems too, in many cases.

Retired Michiganders on a fixed income may not want to take money from a retirement account to pay off large amounts of medical or credit card debt. Doing so can have long term effects as your nest egg will dwindle down and the money that you withdrawal will be taxed as income.

For seniors with pressing medical bills and credit card debt, it may make more sense to file for Bankruptcy in Michigan.  Bankruptcy has helped many people by giving them a fresh start to their new lives without the burden of overwhelming debt. Senior citizens may even be able to keep their homes during a bankruptcy filing.

Up to one million dollars in assets in IRAs and other qualified retirement accounts are exempt property when filing for bankruptcy. Exemptions or exempt property are part of what creditors are not entitled to take from you to satisfy a debt. Seniors can discharge their debts through bankruptcy while keeping their retirement income for basic living expenses.

This is increasingly important as the number of people who retire is increasing (automotive and non-automotive) and there is a concern that social security payments will  be reduced.

Many Michigan senior citizens have rapidly increasing credit card debt that has spiraled upwards in the last few years. Bankruptcy is available to seniors  and can not be overlooked for those about to retire or for improving the quality of life for those already in retirement.