Years ago the plan was to enter retirement with no mortgage
and no credit card debt. Of course years ago the plan was also to do this at a
young enough age where you could enjoy yourself, maybe do a bit of traveling. All
bets are off these days and many people are nearing retirement with not only a
mortgage payment, but hefty credit card debt, making it impossible to stop
working because they can’t live without the paycheck.
A lot of the articles you read about retirement offer tips
to soon to be retirees, and many of them have good advice. They suggest that if
your mortgage isn’t paid off, you up the payments prior to retirement to try
and make it happen. If you owe credit card debt, they suggest you put yourself
on a payment plan that will take 3 years or less to pay them off.
All of the above is very good advice and a great plan, if it’s
possible. But what if you can’t pay down your mortgage and your credit card debt
because of job loss or decreased income? What if medical bills are piling up? I
provide a lot of free consultations to couples at or near retirement who are in
just this situation. If even one spouse loses a job or takes a pay cut, it can
mean complete derailment. Best laid plans for retirement can be gone in a flash
and you really need to have a back-up plan.
Bankruptcy is rarely anyone’s first option, and for most it
falls way down to plan C or D. But if you’re nearing retirement and are unsure
what to do about the debt you’ve accumulated—for whatever reason—you may want
to speak to a professional. Start with your financial planner, if you have one,
and get their opinion. Find out what your options are and where you stand, or
you may just find yourself at the age of 65 saying “welcome to Walmart.”
Submitted by:
Kerry Hammond, Esq.
Kerry Hammond, Esq.
Bankruptcy Attorney
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