When you envisioned your golden years, you may have thought about traveling around the world, taking up new hobbies, or spoiling your grandchildren. But far too often, senior citizens are forced into bankruptcy instead. For a generation raised to be self-reliant and hardworking, filing for bankruptcy can be particularly difficult. But it’s important for seniors to know that filing for bankruptcy isn’t the same as giving up. Rather, for many seniors, it can be a wise decision that can protect their retirement assets and prevent the possibility of conferring financial burdens to family members.
Reasons for Bankruptcy in Retirement
Even if you have made careful financial arrangements for your retirement, unexpected problems can derail your plans. You may consider filing for bankruptcy after the death of your spouse or a serious illness that resulted in significant medical bills. Losses in investments or real estate, reduced pensions, predatory lending schemes, and sometimes simply the rising cost of living can all be reasons to file for bankruptcy. Other seniors may face the unexpected financial burdens of raising grandchildren or helping adult children who are experiencing financial difficulty.
Benefits of Filing for Bankruptcy
Filing for bankruptcy is not a decision to be made lightly, but it does have many benefits. For starters, a bankruptcy discharge does not affect your retirement assets. You will not lose qualified retirement plans, including your 401(k), 529 Plan, Roth IRA, or SEP IRA. Filing for bankruptcy will enact an automatic stay, which prevents creditors from harassing you. It will also halt eviction or foreclosure proceedings and protect your personal property, in addition to giving you greater financial stability to enjoy your golden years.
The bankruptcy law firm of Cutler & Associates, Ltd. would like to extend an offer for a complimentary bankruptcy consultation to senior citizens and others in the Chicago area. Our bankruptcy attorneys will carefully review your financial situation, explain your options, and answer your questions.