BANKRUPTCY IS YOUR RIGHT
Bankruptcy is one of the few laws or legal principles outlined in the United States Constitution. The founding fathers knew that in order to form a more perfect union (to use the words of Abraham Lincoln) the federal government had to allow for a safety valve in the case of debt lest debtors’ uprisings and rebellions would shake the foundations of society itself or even lead to such heinous realities as debtors prisons, so acutely described in Charles Dickens novels of the mid 19th century. Americans of today are no less of a debtor’s nation than at the time of the founding fathers. We also certainly benefit from this level of forethought and insight into societal solutions.
SAVING FOR RETIREMENT
With the advent of the retiring baby boomers it is not surprising that society is grappling on how to protect the baby boomers retirement nest egg from predatory and unscrupulous individuals as well as otherwise law abiding creditors who would have no compunction against suggesting that someone withdraw funds from their exempt retirement account or defer payment to their retirement to pay off their debts. Indeed, many baby boomers are held back from retirement due to debt.
THE IMPORTANCE OF BANKRUPTCY
Certainly when it comes to the issue of saving for retirement all options must be considered. If a creditor is trying to negotiate a settlement and suggests that you can borrow against your retirement or defer paying into your retirement you may want to consider a third option. Bankruptcy has been used by many historically famous people such as Thomas Jefferson (actually several times), Ulysses S. Grant, Abraham Lincoln (all three of which are now on our national currently ironically enough), Walt Disney, Milton Hershey and Henry Ford. If it was good enough for them it can certainly be good enough for the average person. Most importantly what bankruptcy will do is to protect your retirement money so you and your loved ones can benefit from it.
YOU ARE CERTAINLY NOT ALONE
Your current bankruptcy funds are protected under federal law if they are tax exempt under federal law, Colorado law goes further and protects pretty much any retirement funds. Moreover, it will also allow you to save more money so that you are indeed prepared for retirement appropriately. While it is appropriate to use the bankruptcy code to the advantage of debtors, it is an unfortunate reality that the age group of 65 to 74 year olds are the fastest growing group of bankruptcy filers. The New York Times noted this fact in a May, 2015 article that referenced the many benefits to those at or near retirement age.
WHEN IS BANKRUPTCY THE RIGHT SOLUTION?
If you find yourself paying for medical bills, high interest credit card debt or other debt that may be inordinately burdensome for you, skipping payments to your retirement account or even withdrawing funds from your retirement account to pay for these bills, filing for bankruptcy may very well likely be the best option for you. There is no better time to pay for your retirement than starting now. A Colorado Bankruptcy generally clears debts due and owing, it allows you to plan ahead and put money into retirement where it is protected from creditors. Provided there are no financial mistakes, bankruptcy helps to create a starting point for where your finances and creditworthiness can improve.
The Denver and Centennial law firm of Long & Long, P.C. have decades of combined experience in Colorado bankruptcy having ensured that clients rights, property and money is protected from creditors and others. Long & Long, P.C. can be reached at (303) 500-3426 or by filling out the contact form on this page.