If you are a senior citizen who is searching for a debt solution, you may be considering contacting your creditors directly or through a debt settlement agency for the purpose of renegotiating the amount you owe to each one. In a typical debt settlement arrangement, the creditor agrees to accept one lump sum toward the debt and to write-off or "forgive" the remaining balance. They are under no obligation to do so; however, most creditors see the wisdom in collecting some of the money owed to them rather than none.

If a creditor does refuse to enter into a debt settlement or to consider any other solution to paying off your debt, they may opt to take you to court in an attempt to collect the debt in full. Due to state and federal laws giving protection to senior citizens and disabled debtors, it can be difficult for the creditor to collect even if they have won a judgment against you.

After a creditor has obtained a judgment against a debtor, one typical way they will go about obtaining their funds is through the garnishment of wages. Unfortunately for them, if the debtor's only source of income is from a social security or disability check or from certain types of pensions, they are prohibited by law from garnishing it. The same can be said for bank accounts in that if the funds deposited into them are solely from social security, disability or an approved pension fund, creditors can not go after this money.

Even with protection in place to prevent a creditor from garnishing your income, you should still be aware that there is a third recourse available to them which comes in the form of placing a lien on any property you may own. Also, your age or disability status can not stop a creditor from pursuing legal action to collect a debt if that is what they chose to do. However, with the expense involved and the extra protections afforded to older and disabled Americans, most creditors will opt to choose for a debt settlement.