Protecting Retirement Funds During Bankruptcy
Someone contemplating bankruptcy is naturally concerned about protecting a viable financial future if at all possible. Potential clients often ask our attorneys at Marrs & Terry, PLLC, questions such as the following:
- Can I keep my house?
- Can I keep my car?
- What about my retirement funds (401K, savings plans and pensions or life insurance)?
In case you are thinking of cashing out your retirement funds as a way to repay your debts and avoid bankruptcy, stop! Think again! People who go this route encounter a host of negative consequences including penalties, high taxation and they run the risk of never being able to replenish those funds.
Contact an experienced Michigan lawyer to schedule a consultation with an experienced bankruptcy attorney. At Marrs & Terry, PLLC, we are prepared to help you address these and other questions related to bankruptcy with an emphasis on maximizing the benefits that Chapter 7 or Chapter 13 has to offer you, a debtor in trouble.
Do Not Give Up Your Hard-Earned Retirement
Bankruptcy courts do not want or expect bankrupt people to end up destitute. Your home, your car and your retirement savings are typically protected, allowing you to move forward with some assets for the future. In fact, up to $1.1 million in retirement savings may be kept out of the reach of creditors in the event of a bankruptcy.
Preserve your future financial security. Don’t drain your retirement savings before filing bankruptcy. Losing your 401K or putting your pension at risk is likely to set you on a path to utter financial ruin when you reach retirement age.
Filing bankruptcy may seem like the absolute last resort. But for many people, it is the path to many positive outcomes including the following:
- True debt relief that gets at the cause of the problem
- The opportunity to rebuild credit
- Preservation of home and other key assets
- Protection of 401K and pensions
Is divorce a factor in your pending bankruptcy? Marrs & Terry, PLLC, is a family law firm as well as a bankruptcy law firm. Ask our Michigan bankruptcy attorneys about how to position yourself and your spouse in the best position to eliminate or restructure debt and limit taxation for both of you in the process.
Contact Help You Can Depend On
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.