| Although there is no specific age in which people get | | | | court to be used for paying creditors. |
| into financial difficulties, many people get these | | | | This is according to a new law that was passed in |
| problems when they have already retired. Instead of | | | | 2005 to protect those who cannot pay their debt |
| resting, they find themselves trying to pay off debts | | | | and yet they are bankrupt. This will happen in the |
| with their hard earned money that they would | | | | bankruptcy case but not in any form of judgment. In |
| otherwise be enjoying in their sunset days. These | | | | case the retired debtor has some retirement plans to |
| people will liquidate their retirement savings in order | | | | his name, they can be used to pay off the debts as |
| to pay their debts. | | | | long as they are part of the estate in case of a |
| In this case, the debtor ends up paying huge | | | | bankruptcy. |
| amounts of tax as they try to liquidate large | | | | It should be noted that, this does not include any |
| amounts of their saving which in most cases in not | | | | cash savings made by the individuals for their later |
| even enough to cover the debts. This will also leave | | | | years. The court can exempt such plans if their value |
| the debtor unprepared for their old days. It is not | | | | is less than a million dollars. In cases of funds being |
| always that funds may be liquidated to pay off | | | | used in plans by the retired debtor, they are to be |
| debts. This means that if these savings are in a | | | | exempted from income taxes. |
| special account, these may be exempted by the | | | | |