Featured News 2018 Why Seniors Are Turning to Bankruptcy for Asset Protection

Why Seniors Are Turning to Bankruptcy for Asset Protection

These days, more seniors are working than ever before. By 2024, experts expect the number of 65- to 69-year-olds in the workplace to grow to 36 percent (up from 22 percent in 1994). The reasons for delayed retirement are numerous: some seniors want to stay active and alert, others love their jobs. However, many seniors are working because post-retirement life is getting longer and more expensive...and wages have stagnated in recent decades.

In short, people have less money and more costs.

As a result, many seniors struggle to pay their mortgages, cover their living expenses, and still have savings set aside to one day give to the kids. What happens once the work dries up and the creditors begin calling? When the debt is getting deeper with no end in sight, seniors can declare Chapter 7 bankruptcy, which wipes out many kinds of unsecured debt (including medical bills and credit card debt).

Bankruptcy gives indebted seniors the opportunity to hit the financial reset button. Most of them want to leave their family a solvent estate--they don't want to leave debt to their grandchildren.

Bankruptcy can bring much-needed relief from debt incurred by medical bills, while helping out needy adult children.

Bankruptcy is an excellent tool because it protects:

  • Social Security benefits
  • Pensions
  • 401(k)'s
  • Qualified profit-sharing plans
  • Home equity
  • Individual retirement accounts up to $1.245 million

Don't Make This Mistake

The biggest mistake people make is postponing bankruptcy for years before filing. When a senior's finances start to head south, they should file sooner than later, before things get out of hand.

When seniors spend their retirement assets without the earning power to recover them, they risk a downward financial spiral. Rather than sinking, the best strategy is to file for bankruptcy and defend your assets at all costs.

Is bankruptcy right for you? To find out, use our directory to find a qualified bankruptcy attorney!

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