Tagline
623-208-6098

Protection from creditors during a second marriage

When an Arizona couple in their 60s decides to take the plunge and remarry, they might wonder how that will affect their retirement accounts. One party might bring debt, such as credit cards or medical bills, to the union while the other is debt-free with retirement monies in place. Retirement accounts are generally safe from creditors even if someone has medical bills that are not covered by insurance. Even if the debt forces one party to later declare bankruptcy, creditors will not be able to access the funds in employer-provided retirement accounts.

One expert recommends that addressing possible financial problems due to medical bills is wise since unpaid medical bills are often a major factor when a person files bankruptcy. In fact, a Harvard University study reported that most of those who filed bankruptcy because of medical bills actually had health insurance coverage.

A person with extremely high medical bills is no longer subject to a yearly or a lifetime maximum due to the Affordable Care Act. However, even someone who is on Medicare is potentially at risk for medical bankruptcy due to out-of-pocket costs. The Employee Benefit Research Institute found that a 65-year-old woman in 2013 needs to have saved $86,000 in order to have a 50 percent chance of covering future health care costs. Savings of $139,000 will increase the chance to 90 percent. For men of the same age, the numbers are $65,000 and $122,000, respectively.

Medical expenses, even for those with insurance, can become overwhelming. A bankruptcy attorney can analyze a client's financial situation in order to determine what alternative forms of debt relief may be appropriate.

Source: FOX Business, "Can Future Hubby's Creditors Filch My Nest Egg?", Liz Weston, April 04, 2014

No Comments

Leave a comment
Comment Information
  • MCBA | Maricopa County Bar Association
  • State Bar of Arizona
  • ABA | American bar Association | Defending Liberty Pursuing Justice
  • Oregon State bar
  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Schedule A Consultation Today

Attorneys You Can Depend On And Trust

The Dodds Law Firm, PLC, is located in Surprise and serves clients throughout the West Valley area. To schedule a consultation with a lawyer, call 623-208-6098 or toll free at 877-827-9906. You can also contact us online.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy