Many retirees might not consider bankruptcy as a viable option to help their financial situation. However, if you are struggling financially, bankruptcy may be the best way to protect your retirement assets from creditors. Today, more seniors are considering bankruptcy as an option in retirement.
A Chapter 7 bankruptcy requires at least $10,000 of outstanding unsecured debt (such as credit cards, taxes, medical bills, and court ordered money judgments) in order to file. Filing for bankruptcy can significantly help you get rid of unwanted debt in your golden years. For retirees with a second mortgage, they may want to consider a Chapter 13 bankruptcy. In a recent U.S. Supreme court ruling, it was decided that filing for a Chapter 7 bankruptcy will not allow homeowners to cancel a second mortgage if their homes are not worth the value of their first mortgage.
Retirees would likely be able to qualify for bankruptcy, regardless of their retirement savings, because filings are based on a six-month average of income. Even if you receive more income from Social Security, a Chapter 7 bankruptcy would consider it protected. Other protected assets include 401(k) plans, IRAs, and public retirement pensions. While a bankruptcy filing will remain on your credit report for 10 years, the benefits of filing for bankruptcy often outweigh the cost.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Source:
http://www.thestreet.com/story/13177003/1/why-some-retired-people-might-consider-filing-for-bankruptcy.html
http://www.wsj.com/article_email/supreme-court-underwater-homeowners-cant-void-second-mortgages-in-bankruptcy-1433173699-lMyQjAxMTA1MDA0MTIwMjEyWj