Moving into the golden years without the burden of debt
Have you spent years planning and saving for your golden years? Chances are, you don’t want anything to come between you and your desired retirement age. However, you may have some concerns about moving into the later years with your debts.
The financial weight of monetary obligations can be extreme. If you are dealing with an upside down mortgage, medical debt or a high amount of consumer debt, you should know about the available options for relief. Bankruptcy may be an option. Learn what impact it can have on your retirement.
Addressing bankruptcy concerns regarding retirement
While bankruptcy is a major decision, it could also be just the solution you need to get out of debt. Like many others, you may have questions about how the process could affect your retirement funds. Some areas of concern may include the following:
- Retirement accounts: Investment accounts such as a 401(k) are generally protected from creditors during bankruptcy. IRA accounts, on the other hand, may only receive protection up to a certain amount.
- Social Security: Federal law protects social security income against garnishment. However, if you mingle this income with other forms of income, it could lose some of its protection. Keeping social security income separate may help you avoid unnecessary consequences.
- Disbursals: Perhaps you are already receiving income from retirement accounts. While any amounts that are necessary to meet living expenses may go untouched, anything over these amounts might not have the same protection.
- Discharge of debts: Aside from concerns about retirement accounts, you may also wonder which debts will be eligible for discharge during bankruptcy. While medical and credit card debts are eligible in many cases, seek legal advice to get the correct answer for your circumstances.
While bankruptcy might not be the correct path for everyone, if you are facing substantial amounts of medical debt, or even credit card debt, it could provide you with the relief you need to move toward retirement with peace of mind.
Pursuing relief from debt
The bankruptcy process can be challenging and filled with complexities. Seek skilled guidance from someone with extensive knowledge of both federal bankruptcy laws and those specific to the state of Florida. Get advice on which form of bankruptcy could be your best option. This support and assistance could make all the difference as you obtain a fresh financial start, clearing the path toward your retirement.