There is a growing need for those entering their ‘golden years’ to face the reality of a fixed income that once looked like a hefty savings plan, plus Social Security is now Social Security alone; if you’re lucky. The stock market plummet has cut many Baby Boomer’s nest eggs by as much as 50% with no recovery in sight. Just a couple weeks ago, I read this article, Bankruptcy for Retirees is A Growing Problem where the author recommends that seniors contemplating bankruptcy should see a credit counselor at a non-profit organization to get their finances in order. What finances? Why does everyone still think bankruptcy is so bad and should be a last resort? I’m outraged!
Seniors are facing an even tougher financial crisis at a time when they’ve been duped by their stock market investments in their 401k plans; Social Security is issuing IOUs; Medicare is just a fraud; and healthcare is up for grabs. Now, you want them to consult with a credit counselor to get their finances in order before they file bankruptcy? Absurd.
I say that medical expenses and credit card debt is bad enough without someone saying you should stay saddled with that debt and do all you can to suffer miserably until your death to pay this debt, and your taxes too. What you really need is to consult with a financial planner and a bankruptcy lawyer to determine the right strategy for you.
There is one warning though; if you’re facing additional and ongoing medical treatment, you may consider delaying filing of bankruptcy only because you will not be able to obtain a discharge of your debts but once every eight (8) years. Otherwise, it’s time to permanently discharge your debts once and for all and live with respect, dignity and debt free in retirement.