Bankruptcy And The Effect It May Have On People Receiving Social Security Or Other Retirement Benefits
People receiving Social Security benefits have been hit hard by the current economic downturn. Most have worked hard all their lives and have been responsible with their money management. Retired people on Social Security usually have an excellent credit rating and have available to them credit cards and other sources of credit to allow them a sense of financial security. These sources of emergency cash have been helpful to them in the past as emergencies arise in their lives. However, too many times the credit card debt that arises out of these emergencies becomes a stranglehold on finances. Being on a fixed income like Social Security creates financial challenges without having additional precious funds going out to satisfy credit card obligations. Often, when you reach a certain percentage of your credit card limits the credit card company will lower your credit limit, cutting off any further charges. Credit card companies will raise interest rates if payments begin coming in late or sometimes for no reason at all. This scenario, all too often, leads to discussion as to whether to pay the credit card debt or the rent, food, gasoline, etc. When on a fixed income people are forced to merely pay the minimum payments on their credit card debt which does almost nothing to reduce the principal amount owed on the credit card balance. They will usually do anything to at least make the minimum payment so they can survive one more month. Sometimes they will borrow money from one credit card to make the minimum payment on that card or other cards to get by “one more month” and to attempt to preserve the good credit standing they have fought all their lives to protect.
If the above scenarios seem familiar to you and you don’t think you can hold out any longer there is hope for you. A Chapter 7 bankruptcy will provide you with the fresh start you deserve. Whether you are receiving Social Security, receiving retirement income or both, bankruptcy may be the answer. A Chapter 7 bankruptcy will not affect your retirement income stream at all. Neither Social Security income or retirement income or a combination of both will be affected. Under modern bankruptcy laws very few people lose ANY property when they file. Most people can file for bankruptcy and keep their vehicles and other property and not lose anything.
If you are in a financial bind and are on a fixed income you it owe to yourself to discuss your financial situation with a qualified bankruptcy lawyer. Most do not charge for their initial consultation and most will file bankruptcy for people on a fixed income for a reduced rate. It can’t hurt to know your options. A Chapter 7 bankruptcy will completely eliminate and erase your credit card debt no matter how much you have and you will never have to pay it back.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.