… years of life mean for America’s retirees?  It could mean that filing bankruptcy before your retirement may be more necessary for some, as nearly 50 percent of Americans fail to properly plan for their retirement.

Unlike past generations, many Americans are reaching age 65 with tons of debt, mortgages, credit cards and even car notes that weigh down on them as they face their retirement years.  Many, who aren’t planning to retire at 65, are often forced into unemployment during …

Category: Bankruptcy , Filing Bankruptcy , Retirement

Tags: Bankruptcy Retirement

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If your employer files for bankruptcy your retirement plan could be at risk.  Here’s what you need to know:

If your employer files Chapter 7 bankruptcy, which is a total liquidation, your pension plan will be automatically terminated.

Pension plans which are terminated in Chapter 7 bankruptcy are insured by the Pension Benefit Guaranty Corporation; but 401k plans are not insured.

If your employer files …

Category: Chapter 11 Bankruptcy , Retirement

Tags: Bankruptcy Retirement

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… Many debtors finding it difficult to keep up with their bills are tempted to borrow against their retirement funds to keep their head above water.  Reductions in salary and especially unemployment can appear to be legitimate reasons for raiding a retirement fund; but doing so may not offer the relief they need. Before borrowing from their retirement fund, debtors need to understand that they will be required to repay that money and that the amount that they borrow may not be enough to repay …

Category: Managing Your Finances , Retirement

Tags: 401k Bills Retirement

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According to an article in the Star-Telegram, the Erickson Retirement Communities have filed for Chapter 11 bankruptcy and has agreed to be purchased by Redwood Capital Investments LLC.

The article said:

“Erickson spokesman Mel Tansill says the bankruptcy filing in Dallas and the agreement with Redwood took place on Monday. He says Erickson must restructure its debt to complete the sale.

Tansill says Erickson will also reorganize by …

Tags: Chapter 11 Title 11 United States Code Erickson Retirement Communities

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… Institute announced the results of a study regarding the savings that a person will need upon retirement to pay for expenses not covered by Medicare and Medicaid.  The results are different for men and women, because of longevity issues.  A man retiring at the age of 65 in 2009 will need anywhere from $68,000 to $173,000 in their savings to cover additional medical expenses.  Because women live longer, they will need even higher savings at retirement.  A woman retiring at age 65 in …

Tags: Employee benefit Health care Retirement Unemployment

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… v. Christians, Trustee)), debtors accused of acting in bad faith after borrowing funds from their retirement account on the eve of their bankruptcy filing.

The details of the bankruptcy case:

In the Chapter 7 bankruptcy case, the debtors completed their bankruptcy paperwork stating that they had an average daily balance of $300 in their checking account and $25 in their savings account. However, after turning in the bankruptcy paperwork to their bankruptcy attorney ; but prior to …

Comment by Jim Ince: … have emptied their retirement nest egg. The sad thing is …

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… 7 bankruptcy case of Kunkelman, Jeffrey D.; In re, the bankruptcy court ruled that a debtor’s retirement contributions must be included in his disposable income and dismissed his Chapter 7 bankruptcy case.

The details of the bankruptcy case:

“The Chapter 7 debtor had one secured debt of $10,731 and unsecured debts of $18,628, including a $4,000 student loan. The debtor filed for bankruptcy just after getting a job in a distant city. Rather than commute, he rented a place to stay …

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… of strong-arm tactics being used by their creditors that threatened the health and safety of the retirement development’s 23,000 senior citizen residents.

The article said:

“It turns out that Erickson’s corporate lenders precipitated the bankruptcy filing on Monday when they tried to get at least $16 million in cash from Erickson and froze accounts containing $20 million that the company needs to operate, according to the affidavit filed by Erickson…”

If Erickson did …

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… Institute announced the results of a study regarding the savings that a person will need upon retirement to pay for expenses not covered by Medicare and Medicaid. The results are different for men and women, because of longevity issues. A man retiring at the age of 65 in 2009 will need anywhere from $68,000 to $173,000 in their savings to cover additional medical expenses. Because women live longer, they will need even higher savings at retirement. A woman retiring at age 65 in 2009 …

Permalink: /fort_worth_lawyer/save-now-for-retirement-medical-expenses-2/

… Institute announced the results of a study regarding the savings that a person will need upon retirement to pay for expenses not covered by Medicare and Medicaid. The results are different for men and women, because of longevity issues. A man retiring at the age of 65 in 2009 will need anywhere from $68,000 to $173,000 in their savings to cover additional medical expenses. Because women live longer, they will need even higher savings at retirement. A woman retiring at age 65 in 2009 …

Permalink: /dallas_lawyer/save-now-for-retirement-medical-expenses/

… and reduced pay and benefits.  But one of the benefits that corporate bankruptcy threatens is retirement funds mostly in the form of a pension or 401(k).  There’s an interesting editorial in the Star-Telegram that calls for the “renegotiation” of how retirement is funded, suggesting that companies may consider dumping pensions.  But will this threaten the income of those already in retirement and/or those workers who are nearing retirement?  Many senior citizens have not …

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… bankruptcy may be reluctant to file because they mistakenly believe that they will lose their retirement savings.  Let’s get the record straight, retirement accounts are generally protected from seizure in both a Chapter 13 bankruptcy and a Chapter 7 bankruptcy.  In the case of a Chapter 13 bankruptcy, your bankruptcy repayment plan is funded by your income NOT by the liquidation of assets including your retirement accounts.  And in the case of Chapter 7 bankruptcy, eligible …

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