Most people when they think of financial planning, they think of a 401(k) or an IRA. Rarely would anyone think about how they could file bankruptcy and wipe out their debt to protect their future. In today’s economy, most Americans have large amounts of credit card debt. When considering the amount of the balances and the interest creditors are charging, for many of them this debt will never be paid off. For someone that is getting up in their years, they should consider filing for bankruptcy before their retirement years. Getting a person’s finances in order will make them be able to spend their older years worry free from unmanageable debt.
For a person close to retirement, they should add up all of their debt and figure out how long it would take to pay it off without charging anymore. If it takes longer than 5 to 7 years, there is a good chance that this debt could never be paid off. These people should take a hard look at filing for bankruptcy to wipe out this debt prior to retirement. If they can’t pay these payments now, they won’t be able to afford it when they’re on a fixed income like Social Security.
Filing Chapter 7 bankruptcy will wipe out all unsecured debt in 4 to 6 months. Getting rid of a large amount of unsecured debt will allow an individual to free up cash to put away for the retirement years. Also as a large number of Americans are losing their homes to foreclosure, in some cases filing Chapter 7 might eliminate enough debt to free up cash that could go towards one’s mortgage, allowing them to save their homes from foreclosure. People in this situation should consider their future and take the time to consult a bankruptcy attorney to see if they should file bankruptcy before it gets too late.
A better solution to stop foreclosure is filing Chapter 13 bankruptcy. Over the last few years there has been a revived interest in using Chapter 13 as an alternative to filing Chapter 7. A Chapter 13 bankruptcy requires an individual and their bankruptcy attorney to submit a feasible repayment plan that will last 3 to 5 years to the bankruptcy court. With Chapter 13 rarely does anyone lose property unless it’s by their choice but to surrender it. Chapter 13 also gives individuals the ability to negotiate unsecured debts to get caught up and repay them over the payment plan. In this tough economic climate that extends beyond the United States and worldwide, many people don’t have the ability to file bankruptcy like we do in the US. The cost of living is continuing to rise nationwide and many Americans are facing retirement. The last thing these folks will want to worry about is having any kind of debt. Financial planning in these times should be a top priority especially for those of age. It’s time to figure out how to get back to a debt-free lifestyle while there’s still time.