You take over as financial Power of Attorney for your loved one and discover she has $65,000 in unpaid medical bills. She cannot repay this debt. Bankruptcy is one option for eliminating medical debit, but the question is whether it’s the best choice for her. Keep these points in mind as you consider the bankruptcy option.

For many people bankruptcy is shameful. This is particularly true for older people who lived through the Great Depression and learned to owe no one. If she’s able, talk with your loved one about her feelings on this subject. If bankruptcy will cause her more emotional turmoil than other options for dealing with her debt, contact a financial advisor for help.

Should you decide that bankruptcy is an option, visit a bankruptcy attorney. Federal law gives individuals two choices for filing bankruptcy: Chapter 7 and Chapter 13. There are differences between them. These include whether she’ll have to sell some of her property to help repay some of the debt and whether she must repay the entire debit. Also, note that Chapter 7 has an income limit which varies by state. If your loved one’s income exceeds that limit, she’ll have to file under Chapter 13

You’ll find references to bankruptcy and seniors on this site’s Resources page. You’ll find a directory of bankruptcy attorneys at http://lawyers.findlaw.com/lawyer/practice/bankruptcy-law.