Social Security's disability fund is projected to dry out in 2016 and Social Security's retirement fund is projected to pay full benefits until 2035 if nothing is done to fix this problem.  (Source: Sacramento Bee/Associated Press)  It should be clear by now that you should save towards retirement because you should not depend on social security to maintain your standard of living.  Moreover, you should not raid your retirement to payoff credit cards, payday loans, personal loans, or medical bills.  Early withdrawal of retirement funds will result in hefty tax penalties and can force you into poverty when you can no longer work.

Another option to resolving unmanageable and overwhelming debt is to consult an experienced bankruptcy attorney in your area.  Muoi Chea is an experienced bankruptcy attorney in Sacramento, Stockton, and Fairfield, California who has been providing debt relief for consumers and small to midsize businesses throughout Northern and Central California.  Chapter 7 Bankruptcy can eliminate your credit cards, payday loans, unsecured personal loans, and medical bills.  If you do not qualify for Chapter 7 Bankruptcy, you might qualify for Chapter 13 Bankruptcy to repay only a portion of your debts.  How much you are required to repay your creditors through a Chapter 13 Bankruptcy depends on the value of your properties, income less reasonable and necessary living expenses, and financial transactions in the last 2 years.  If you are only required to repay only a portion of your debt back in a Chapter 13 Bankruptcy, then the rest of the debt will be discharged or eliminated after you complete your plan payment.

Bankruptcy is a tool created by Congress to give you a second chance.  You should not feel ashamed if you need to file for bankruptcy because you cannot afford to repay your debts.  Near-Bankrupted corporations and financial institutions did not feel ashamed when they took billions of dollars in bailouts funded by hard-working taxpayers like you who are struggling financially yourself.  It is a smarter decision than depleting your retirement in an uncertain financial future.