Bankruptcy and Retirement — How to Create a Sound Financial Future
Many baby boomers are struggling with credit card debt, most likely because their income is much lower than when they were working, but their expenses may not have decreased much. They may be facing high prescription and medical care costs, and any financial emergency seems magnified when you are living on a fixed retirement income.
Consequently, some seniors find themselves choosing to file for bankruptcy as a solution to their personal debt crises. Whether the cause is poor planning, mounting credit card debt, lower income and home values, or unexpected medical expenses, many elders are facing tough decisions when it comes to their financial future.
In a report by the University of Michigan Law School, the number of bankruptcy filers age 65 and older rose from 2.1% in 1991 to 7.0% in 2007, making the over-65 age group the fastest growing age demographic in the Consumer Bankruptcy Project (CBP) study. In the CBP study, credit card debt proved to be the leading cause of bankruptcy in elders.
Does bankruptcy make sense for elders?
Bankruptcy is not always going to be the best option for everyone, and there are many issues that factor into the decision to file. If it is a valid option for you, bankruptcy could represent the opportunity to discharge a lot of debt and get a clean financial start. Despite the fact that a bankruptcy will remain on your credit report for 10 years, it will not prevent you from getting credit. In fact, filing can actually improve your credit far more quickly than trying to pay down your debts over time. The reason for this is because once you have come out of bankruptcy, you will no longer have that lingering debt that ruined your credit score in the past. If you are struggling with large amounts of credit card debt or unpaid medical bills, you can get these discharged. Scheduling a consultation with a DebtStoppers bankruptcy attorney can help you figure out the best option given your specific circumstances.
What are the benefits of bankruptcy?
Bankruptcy is a valuable tool that can help you get rid of the debt that has been hanging over your head for so long. Filing for bankruptcy will help you get your financial problems sorted out quickly so that you can actually enjoy this time that you worked so hard for. In the process you will learn how to create a sensible budget, how to spend wisely and how to make sure you don’t get into debt again.
The retirement years are supposed to be a time of relaxation after a lifetime of hard work. If you are stressed and overburdened by debt, not only will it ruin your quality of life, but it can erode your health.
To learn more about bankruptcy and whether it’s the right solution for your financial situation, contact DebtStoppers today to schedule your free personal debt consultation with one of our experienced bankruptcy attorneys.