Throughout their lives, many Tennessee residents have worked hard to earn money and save for retirement. Unfortunately, many of these hardworking individuals may still find themselves facing mounting debt due to medical bills, emergency expenses or other issues. Luckily, bankruptcy may be an option that could potentially help individuals handle their financial issues without depleting retirement funds.
When an individual is facing considerable debt, he or she may think that first using any available funds to pay down the debt is a better option than considering other relief methods. For older individuals, these funds may come in the form of their retirement savings. Though it may seem like a viable option for dealing with debt, using retirement funds could cause substantial issues in the future.
Rather than depleting certain funds, bankruptcy is an option that concerned parties may want to consider. Retirement funds are typically protected under bankruptcy laws, meaning that those funds should not be subjected to repaying creditors. Bankruptcy can help interested parties create repayment plans under the Chapter 13 process or liquidate assets under the Chapter 7 process while leaving retirement funds intact. The individual circumstances will contribute to which method may suit a particular situation.
The bankruptcy process is potentially quite beneficial. It can help filers get back on more stable financial ground while also protecting certain assets. Tennessee residents who are hoping to find a way to handle their debt may find information on bankruptcy options and qualifications enlightening as they move forward toward achieving a fresh financial start.
Source: elpasoinc.com, “Bankruptcy can help seniors protect assets“, Constance Gustke, June 1, 2015