Address Your Scariest Debts Now, Before You Retire
During your working years, thoughts of debts and how much you owe on the next installment are a constant presence. Your days are a scramble not to miss the grace period on any of your debt obligations. You pay and pay, with barely any money left over from your paycheck after all those debt payments, but even though your debts are only getting smaller by tiny increments, at least they are not getting bigger. The goal is to pay off your debts by retirement. You are starting to get the feeling that being debt free by age 65 is impossible, but you have neither the time nor the courage to work out the calculations. Ignoring your debts when you are over the age of 60 is as unwise as it is when you are younger. You might think that, since you do not own any property that your family might inherit, the creditors can just help themselves to the crumbs during probate, but if you take this approach, you lose sight of how much of a nuisance your debts can be in retirement. The law includes several protections for financially vulnerable borrowers against aggressive debt collection practices, but addressing your ugliest debts now can make your future financial catastrophes less catastrophic. For help facing unpleasant truths about your financial situation before you retire, contact a Tampa estate planning lawyer.
Being a Judgment Proof Retiree Is Not Aspirational
In Florida, no one abides by the rule that you should pick on someone your own size. Alligators swim through canals in residential neighborhoods and snap up lap dogs that venture down to the water’s edge to relieve themselves. Likewise, business to consumer lawsuits thrive in the courtrooms of Florida, as big corporations snap up the modest assets of individuals who have fallen behind on their payments. The court might subject you to a debtors’ examination, where you must answer questions about your income and spending. Then the court decides how much it can garnish from your bank account each month. Yes, Social Security benefits are exempt from garnishment, but the court can gobble up most of your other money. It is as austere and existence as living on the Personal Needs Allowance while receiving Medicaid nursing home care. If you truly have nothing for creditors to seize, the court can declare you judgment proof.
How to avoid this fate, where you have nothing, either before or after the court takes its share. You can declare bankruptcy and discharge your eligible debts. It is better to do this before retirement, though, so that your credit score can recover somewhat by retirement. After you retire, you no longer have the employment income that helps your credit score bounce back quickly after a financial setback.
Contact David Toback About Gray Debt Relief
A Central Florida estate planning lawyer can help you discharge or settle your stubborn debts so that they do not cast a shadow over your retirement. Contact David Toback in Tampa, Florida to set up a consultation.
