Bankruptcy and Retirement

Already U.S. life expectance is 80 years and the CDC predicts that many Americans could live to be 100 years old.  But what does that extra 20 years of life mean for America’s retirees?  It could mean that filing bankruptcy before your retirement may be more necessary for some, as nearly 50 percent of Americans fail to properly plan for their retirement.

Unlike past generations, many Americans are reaching age 65 with tons of debt, mortgages, credit cards and even car notes that weigh down on them as they face their retirement years.  Many, who aren’t planning to retire at 65, are often forced into unemployment during recessions such as the one we’re experiencing now.  Being an unemployed senior citizen can be more challenging especially during a recession. Many employers hesitate to hire seniors because of health care costs and the belief that they will be retiring soon. So what should a senior citizen do if they find they are facing retirement with lots of debts and little income?  Consider bankruptcy.

Bankruptcy can help senior citizens reduce their debt obligations and free up income that can be invested into a retirement account.  With bankruptcy, a senior citizen can save their home from foreclosure and/or discharge medical debt they can’t afford to pay.  And since bankruptcy will protect a senior’s retirement account from creditor seizure, their future income is secured against the raids of debt collectors. What senior citizens don’t want to do is use their retirement funds to pay debts. That’s a mistake.  And most likely the retirement funds won’t be enough to cover all of the debts anyway.  Medical debt alone can climb into the hundreds of thousands of dollars which could easily wipe out a retirement account.  Don’t wipe out your future, consider bankruptcy instead.  Bankruptcy can give senior citizens the peace of mind they need to enjoy a high quality retirement.

Speak to a bankruptcy lawyer today