Getting Out of Debt To Retire Early: The Early Retirement Dream

Have you ever closed your eyes and wondered what it would be like to be able to retire immediately? It is ok. The fact that you are reading this blog might mean that you harbor a secret (or not so secret) desire to do so. You can admit it. Don’t worry. I promise I will not say a word to your boss.

The truth is that you are not alone in that wish or desire. For many people, the great dream is to have the financial ability to retire immediately. While retiring this very instant may not be feasible (if it is, then kudos to you), there is a growing movement that promotes retiring early.

Of course, retiring may mean different things for different people. For some people, retiring may mean luxurious vacations in Europe or relaxing on the white sandy beaches in the Caribbean and for others, it may simply mean that they will now focus full time on a hobby or passion that has been long neglected. Whatever retirement means to you, there is one large encumbrance that stands in the way of or delays the fulfillment of those early retirement dreams-debts.

Most of the popular personal finance gurus agree that it is best to retire without debts, particularly general unsecured debts. So, how do you go from being in debt to retiring early? How do you get from here to there?

3 Tools That Can Resolve Debts

There are a number of tools that people may use to resolve old or defaulted unsecured debts. Below are a few of the most used approaches (in no particular order of importance):

1. Debt Negotiations

This approach involves negotiating the debt repayment terms with the creditor and may be used to obtain an extended payment plan, reduced balance, lowered monthly payment, etc. These revised repayment terms may offer you a better ability to get a handle on the debts and repay the debts that you would not otherwise be able to repay.

Please keep in mind that while the process is voluntary and there is no law that will make the creditor take less than the balance owed, most creditors are willing to negotiate a settlement. In fact, Loan Lawyers have been successful in negotiating settlements on a large number of debts owned by original creditors. Original creditors are companies that own the debts while you are current.

2. Debt Defense

This approach involves vigorously litigating the merits of the case and the right to collect and is best employed in cases where the plaintiff is a debt buyer vs. an original creditor. Debt buyers are companies or entities that purchase the debt and the purported right to collect after the account is in default.

Here at Loan Lawyers, these are some of our favorite cases for the simple fact that we have been able to get countless of these cases dismissed without our clients paying anything to the debt buyer. Never settle a debt buyer case without first coming to see Loan Lawyers to discuss the merits of your case! If the intent is to retire early, then it is important to maximize the use of every dollar. By settling a debt buyer case before you see our debt defense lawyer, you run the risk of paying thousands or tens of thousands of dollars on a lawsuit that we might other be able to get dismissed.

3. Bankruptcy

Bankruptcy can be a good tool in clearing up debts and providing an opportunity to hit the reset button on your financial life. To do this through bankruptcy, you will need to obtain a discharge. There are different chapters of bankruptcy, but the most common are Chapter 7 and Chapter 13.

Chapter 7 is great for individuals with little to no assets or for individuals looking to walk away from heavily encumbered assets without the risk of future liability. This includes individuals who have lost their homes in foreclosure, but may still have potential liability for deficiency claims i.e. the amount of the judgment that remains unpaid after the sale of the home. Chapter 7 is comparatively short with most Chapter 7 bankruptcy cases lasting about 3 months. Click here for more information on the Chapter 7 process.

Chapter 13, on the other hand, tends to last three or five years. It can be used to try to save homes from foreclosure or for individuals to structure repayment plans to address outstanding debts ranging from mortgages, auto loans, and outstanding income taxes owed to the Internal Revenue Service to medical bills and credit cards. Chapter 13 may result in repaying pennies on each dollar of general unsecured debt owed. Click here for more information on the Chapter 13 process.

What is The Best Tool?

The question of which tool is best employed in your case results in the most “lawyerly” of answers-it depends. As infuriating as that response is, the truth is that each set of circumstances is unique and what works for your neighbor may not work for you.

To determine the best approach to tackling your debts standing in the way of your early retirement dreams, it is best to discuss the specifics of your situation, both personally and financially, with an attorney experienced in debt-related matters. Together, you will be able to determine which debt resolution method works best for you and your family. Wishing you the best in your pursuit of that early retirement dream!

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 1,800 homes from foreclosure, eliminated $100,000,000 in mortgage principal and consumer debt, and have collected millions of dollars on behalf of our clients due to bank, loan servicer, and debt collector violations, negligence, and fraud. Contact us for a free consultation to see how we may be able to help you. Call us at 1-888-Fight13 (344-4813).