After having worked your entire adult life, you were likely looking forward to a serene retirement with financial security. Unfortunately, many people nowadays have seen this dream vanish in the wake of a financial crisis.
If you find yourself pondering whether bankruptcy is a smart and valid option for you in your current state of life living in retirement, you are not alone. Here is some information regarding filing for bankruptcy in your retirement years.
More retirees filing for bankruptcy
U.S. News reports that the rate of bankruptcy filings among the elderly has been growing rapidly in recent years. One of the main reasons for this surge is that income inequality has also been growing as the gap between the wealthy and those with less money continues to widen. The rate of bankruptcy filings among the elderly increased threefold in the 25 years between 1991 and 2016, according to a report by the Consumer Bankruptcy Project.
Filing for bankruptcy in retirement
One reason many people decide to file for bankruptcy is because creditor harassment has reached an untenable level. There are many things that the law prohibits creditors to do, including contacting you late at night or early in the morning, cursing or threatening you, and lying.
You may worry about losing your house, your vehicle or your retirement accounts to creditors if you file bankruptcy. However, there are options that may allow you to keep your assets, and the law protects retirement accounts from liquidation.
When you are living on a fixed income, bankruptcy and a fresh financial start are even more important to help you live out your retirement years with peace of mind and financial stability. Do not avoid the prospect of a bankruptcy filing because of concerns or stories that people have shared with you. Get the facts so you can take the action that is most appropriate for your situation.