Retired And Just Getting By? Grow Healthy, Wealthy, And Wise With Chapter 13 Bankruptcy

25 March 2015
 Categories: , Articles

Are you retired? Are you tapping your wallet dry every month trying to pay the bills? Are you growing concerned that you won't make it through your golden years without going completely broke? If so, Chapter 13 bankruptcy may be the key to turning your retirement around.

Cheers To Your Health

Stress creates real physiological changes in your body. When you're lying in bed at night crunching numbers and worrying about payment due dates, your body begins to release adrenaline and cortisol.

The main job of these hormones is to prepare you for danger. Your heart rate peaks, your blood pressure goes up, and your body grows ready to bust out the fight or flight response. Essentially, being stressed out over money is like being constantly ready for a tiger to attack you; it's dreadful and will quickly take a toll on your health.

But, while most people imagine this feeling worsening after filing for bankruptcy, studies prove quite the opposite. Chapter 13 bankruptcy lessens the stress of worrying about money, and therefore makes you healthier.

How much healthier? According to one study conducted by the National Bureau of Economic Research, people over the age of 60 who apply for and are granted Chapter 13 bankruptcy show a 10.9% lesser mortality rate than those who apply for, but are denied Chapter 13 bankruptcy.

Toast To Your Wealth

According to, older Americans (above the age of 50) carry more credit card debt than those below the age of 50. What are they charging? Over 50% of them are using their credit cards to keep up with medical expenses. Others are paying up-front for their out-of-pocket medical expenses and using their credit cards to charge day-to-day necessities such as groceries or car repairs.

Are they fixing their problems? Of course not; they're just postponing them. With their debt mounting and their incomes limited, the only real solution is to find a way out of that debt. 

When you're approved for Chapter 13 bankruptcy, both unpaid medical expenses and credit card debt can be discharged. You don't lose your house, you don't lose your vehicle, and you don't lose your retirement savings. 

Instead, you'll develop a plan to pay back a percentage of your debt, with secured debt (such as your home) taking priority. Your financial situation will be thoroughly evaluated, and if you can afford to pay a portion of your unsecured debt, you'll be asked to do so. After a period of 3-5 years, however; any unsecured debt you still have will be completely forgiven and you can begin your path to a brighter financial future. 

Celebrate Your Wisdom

As part of the requirements for filing Chapter 13 bankruptcy, you'll be asked to attend 2 classes -- credit counselling and debtor education. Both classes must be provided by an agency that has been approved by the U.S. Trustee Program, so ask your bankruptcy attorney for a list of approved counselors. 

During these courses, you'll take a hard look at your income and your expenses. You'll develop an income-based budget, and talk about how you can stick to the budget to avoid falling into debt again. Embrace these counselling sessions. They're chocked full of valuable information that will assist you in keeping up with your bankruptcy repayment plan and getting out of debt for good.

Your credit counselling session will last between 60 and 90 minutes, and your debtor education class will last roughly a couple of hours. The total cost of both classes will run between $100 and $150, but there are waivers available for those who can't afford the charge.

Spend your golden years healthier, wealthier, and wiser. If you're retired and barely able to keep up with your expenses, contact a bankruptcy attorney to begin the process of filing for Chapter 13 bankruptcy.