Debt and Financial Problems After Retirement
Dealing with financial challenges at any age can be very frustrating. However, dealing with debt and financial problems after retirement causes some residents in New Jersey to question what options they might have and how this could impact their retirement assets. It is important to consider how bankruptcy exemptions could work to protect retirement assets and help a retired individual obtain a healthy financial future.
Although it is not easy to make the decision to file for bankruptcy, delaying the process could mean exhausting retirement funds. While some individuals might delay filing for several years because they are shameful of their current financial situation, retirees should consider getting help early.
When Retirees Should File Bankruptcy
Once it becomes a realistic solution and the individual is fully informed of their options, retirees should file right away. This not only helps reduce the risk of the downward financial spiral they may not be able to overcome, but it also helps them better defend their assets and take advantage of any and all bankruptcy exemptions.
Retirement Savings In Bankruptcy
When it comes to retirement income and savings, these are generally untouchable during bankruptcies. These assets include includes pensions, 401(k)'s and qualified sharing plans. These individual retirement accounts and social security payments are exempt from creditors.
The Importance of Understanding the Process
Whether an individual is a retiree or not, it is important that those filing for bankruptcy fully understand the process they are initiating and how it will impact them. Additionally, no matter what type of bankruptcy an individual files for, it is important to try to negotiate with creditors. This could lead to a more advantageous settlement.
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It is important to have a full financial picture before, during and after the bankruptcy process. This helps ensure an individual is aware of their situation and has been making informed decisions regarding their financial future. Contact a New Jersey bankruptcy attorney for help today.
Source: The New York Times, "Bankruptcy Can Help Seniors Protect Assets"