John Doe, age 65, continues to work, not because he wants to, but because a few years ago he suffered a heart attack that resulted in fifteen thousand dollars in unpaid medical bills. He saved for retirement his whole life, but he knows unless he keeps working he will not be able to make his house payment, his credit card payment and pay his medical bills. Even if he works until he dies, he fears he won’t be able to pay off his bills. While Mr. Doe doesn’t really exist, this is a situation that arises time and time again. What should you do if you are reaching retirement age, but have too much debt to stop working?

No one really wants to die with their boots on, but many people feel they must keep working later in life in order to repay their rising credit card and medical bills. These bills can create added stress and sometimes aggravate or even cause medical issues. Relief may be available. Bankruptcy can be a great way to get rid of debts, enabling retirement as planned.

When considering Bankruptcy many people shy away from filing Bankruptcy because they do not want to lose their retirement savings. Retirement accounts like pensions, 401(k)’s, and IRAs are entirely protected with a few exceptions. This is because retirement accounts qualified under the Employee Retirement Income Security Act are not considered property of the Bankruptcy Estate. What this means when considering Bankruptcy is the money you saved for retirement cannot be taken from you to pay off your debts. So, if you’ve been saving for retirement, but know that you will be unable to make all of your monthly debts and obligations off of your Social Security and retirement income alone, you may want to look into Bankruptcy.

Consider Bankruptcy as a strategy to unburden your life. If you are just making minimum payments on your credit cards, you may eventually pay them off, but you can end up paying several times the amount you initially charged. I challenge many of my clients to make a budget and review their debts calendaring when and if they will ever pay off their debts with the payments they are currently making. I have my clients do this to understand how much money in the long run they can save by eliminating their debt now with a Chapter 7 Bankruptcy or filing a Chapter 13 Bankruptcy where they have a plan to pay off that debt in three or five years. Yes, if you decide to file Bankruptcy your credit will decrease, but you can rebuild your credit after the Bankruptcy has completed.

If you are considering Bankruptcy, or just feel forced to continue working in order to pay off your debts, please speak to an experienced Bankruptcy Attorney.

Contact us today for more information by calling 772-283-2626 or visit us online at TreasureCoastLegal.com.