December 1st, 2008 by Reed Allmand 
Millions of middle-class Americans know what it’s like to struggle to pay their bills, cover health insurance, daily expenses AND save for retirement. For those in their late 40′s and 50′s, those golden years are fast approaching. Incomes have not kept pace with living expenses and millions of those in the middle-class have depended on debt just to sustain the basics, like a home, car, education, health insurance and a vacation once every 5 or 10 years. Unfortunately, by the time these debtors reach their golden years, they’re saddled with enormous debt. They haven’t put away enough money to cover their debts and a comfortable retirement. This is when bankruptcy becomes an important option in retirement planning. Congress has enacted bankruptcy laws designed to protect Americans’ retirement income from creditors and every debtor in or reaching retirement should take full advantage of these protections offered by bankruptcy.
A Few Things You Should Know
The 2005 bankruptcy reform allows debtors in Chapter 7 or Chapter 13 bankruptcy to continue contributing to their retirement plans, even if that means less money for creditors. The bankruptcy laws also exempt social security income from being counted during the "means test" or from being seized by creditors during a bankruptcy.
f you are a debtor facing mounting bills, you do not have to suffer or neglect your retirement savings to repay debt. Bankruptcy laws recognize that funding retirement is MORE important than paying debt. Talk to a bankruptcy attorney today to find out how you can continue paying into your retirement plan while getting a clean slate with bankruptcy.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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