No matter how much money you have or what you expect your retirement years to look like, it’s clear that things could change quickly.
If they do, the debt you face — or simply a lack of savings — could really negatively impact your retirement.
A millionaire’s riches-to-rags story illustrates the danger
Take, for example, the situation of one woman who worked in real estate and became a millionaire. She lived in California, where the cost of living is very high, but it was always affordable to her. Then the real estate market collapsed, and she lost it all. Reports claim that she had about $15 in the bank, she had to file for Chapter 13 bankruptcy, and she only had around $1,000 left each month.
To make things work, she left California and its high costs behind. She found a town in Iowa with less than 700 people and moved there. The low cost of living made it possible for her to retire, though she did admit that she had never in her life imagined that retirement looking like this.
She was content with her new situation, however. She just had to adapt and think a bit outside of the box.
You can get help as you work through difficult financial issues
This story highlights how debt issues can impact everyone, and how bankruptcy may be one of the only ways to find any level of relief. This particular woman had more wealth than most people will ever see in their life, and she still found herself looking for cheaper places to live in her retirement years.
Anyone facing this type of debt must understand all of their options and what to do moving forward. Working with an experienced bankruptcy attorney is often wise.