Anyone who’s spent his or her life working hard deserves the peace and enjoyment of a comfortable retirement. Unfortunately, it’s increasingly common for seniors to find themselves burdened with debt. As the safety net for older Americans continues to shrink, the rate of Americans over 65 who’ve filed for bankruptcy is higher than ever — three times what it was in 1991.
If you are of retirement age and finding it hard to make ends meet, I want you to know that it’s never too late for a fresh start, and bankruptcy offers real relief. I’ve learned throughout my long career as Memphis bankruptcy lawyer, however, that there are more than a few misconceptions about retirement and bankruptcy, so I’ve answered some of the most common questions below.
1) Is there an age limit for filing bankruptcy?
Technically, there is not a requirement that states you must be a specific age to file bankruptcy. While most filers tend to be at least 20 years old, the financial freedom bankruptcy offers is truly for all ages, and as recent reports go to show, many senior citizens file all the time.
2) Can creditors go after Social Security income?
Federal law protects Social Security and disability income from being garnished by creditors. But once the money goes into your bank account, it can be garnished. So that’s one big reason to consider bankruptcy when you’re retired: it will help you clear your debts so you won’t have to worry about that money being taken.
3) Can you relieve medical debts through bankruptcy?
Yes, and that’s a big reason why many seniors file for bankruptcy! If you’re struggling with medical debts, Chapter 7 bankruptcy is probably relevant to your situation. In a Chapter 7, your medical bills or other healthcare-related debt can be completely eliminated.
4) How does bankruptcy affect retirement funds?
The money in retirement plans like a 401(k), a 403(b), and others can’t be touched by creditors if you file a Chapter 7. They also cannot affect the amount you pay back when filing a Chapter 13.
Talk to a Memphis bankruptcy lawyer today.
As I’ve said before, the power of bankruptcy is for all ages. And you deserve to spend your retirement free from debt. Our attorneys will work with you to discuss your options and ensure you get that.
If you have questions or want to know more about filing for bankruptcy, I’m happy to help. We are known for our compassion — and results — and we’re here for you. Call 901-327-2100 or contact us here to start the conversation with a Memphis bankruptcy attorney.