10 Sep Important information to know before you retire
If you are near your retirement age, you must act now or else you will find yourself miserable during your “golden years” or retirement period. Bankruptcy is a great financial planning tool for those who are within a few years from retirement. You must prepare a financial plan for a debt free retirement so that you will enjoy your golden years. Ask yourself these questions:
- Will my retirement income be enough to cover my daily expenses and medical bills?
- Will I be carrying a mortgage that I cannot pay during my retirement?
- Will my long term care cost and medicines be covered by my pension?
- Will increases in cost of living and medicines be covered by my pension?
On the average, retirement income for seniors range from $800 to $1500 a month. This income does not increase to cover the ever increasing cost of living and medicines. Long term care cost and medicines will not be covered by the monthly pensions of seniors if they do not have any savings or 401K pension plan. There are seniors who are still carrying a mortgage and putting all their money on it in anticipation of an increase in value of real estate. This is the worst kind of money management. Real estate values are still going down and no sign of it increasing in seven years.
It is unimaginable that you will be depending on your monthly pension and still owing a lot of debts. The best time to plan for retirement is now. If you have no way of supporting your daily expenses because of debts then it is time to consider filing for Chapter 7 Bankruptcy. You can discharge most of your unsecured debts by filing Chapter 7 Bankruptcy. Many people especially those close to retirement are stressed out because of all their financial obligations. You do not have to put yourself in this very miserable situation because of debts. You worked hard for so many years to have a comfortable retirement and you deserved it. You can retire debt free if you want. There is nothing to be ashamed of in filing bankruptcy. It is made into law to give people a chance to start fresh and be free from past obligations. Many millionaires are also filing for bankruptcy for many reasons since bankruptcy law is created.
Question: Will the creditors take away my social security pension and retirement accounts if I file bankruptcy?
Answer: No. Social security checks and retirement accounts such as IRA and 401K are exempt from creditors up to $1.1 million. Seniors who file bankruptcy will come with fresh start without seeing a big percentage of their retirement income to be paid to creditors. Any penny saved from paying creditors goes into your retirement.
Note: This is for presentation purposes only and not a legal advice.