How Bankruptcy Affects Your 401k, IRA and Other Retirement Accounts
If you are considering bankruptcy, you may be wondering how it would affect your retirement accounts. Will your accounts be liquidated to pay creditors? Will you be able to preserve any portion of your retirement savings? Should you drain your 401k to pay down debt rather than file bankruptcy?
At Simon & Resnik, LLP, we will answer all your bankruptcy-related questions, giving you the necessary information to make a sound decision about whether bankruptcy is the right solution for you. For legal advice tailored to your specific situation, call our firm at 310-598-7365 or 888-368-4099 to arrange a free consultation.
Will My Retirement Accounts Be Liquidated?
Most likely, your retirement plan will be untouchable by a bankruptcy trustee. In a Chapter 7 bankruptcy, most retirement accounts are classified as exemptions under the Bankruptcy Code. That means these accounts cannot be liquidated to pay your creditors. Under Chapter 13 bankruptcy, none of your assets are taken from you. The monthly repayment plan amount is determined by your income. Your retirement savings are only included in this amount if you want them to be.
Should I Borrow From My 401k to Pay Debts?
No! Before you needlessly drain your 401k or other retirement account to pay down debt, speak with our bankruptcy attorneys. Since retirement accounts are protected in bankruptcy, you may be better off filing bankruptcy and preserving your retirement funds.
Your retirement savings represents years of hard work and sacrifice. Losing this nest egg is a major concern. Get the facts from bankruptcy lawyers who have your best interests in mind.
Southern California Bankruptcy law Firm
Do not let fears about losing your retirement accounts stop you from getting the debt relief you deserve. Count on Simon & Resnik for trusted bankruptcy assistance. We welcome the chance to meet with you and evaluate your financial situation. Contact our firm to schedule a free consultation today.
We maintain offices in Los Angeles and Sherman Oaks. Payment plans are available.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
