Retirement is not always the easy time of your life that people expect it to be. Costs are high, and if you don't have enough to make ends meet, you could end up facing bankruptcy during a relatively vulnerable time of your life. If you have to file for bankruptcy in retirement, there are some things that you should know.
To file for a Chapter 7 bankruptcy in retirement, you'll need to pass a means test. A means test shows if you have an ability to repay your debts based on the amount you currently owe. It takes into consideration your annual income and monthly expenses. The good thing about the means test is that your Social Security benefits won't be considered income for the purposes of the test, so you may qualify for bankruptcy even if you're getting a decent amount of money each month.