The Arizona Bankruptcy Lawyer Blog has posted an article that discusses how bankruptcy could negatively impact your retirement savings. Retirement accounts are usually left alone by creditors, whether you’re filing bankruptcy or not.
Here are some tips to help you avoid damaging your retirement if you file for bankruptcy:
1. Don’t take out a loan against the retirement account. This happens a lot because people will do most anything to avoid filing for bankruptcy. However, taking out a loan against your retirement savings should definitely not be one of those things. Before you do this, it’s very important that you consult with a bankruptcy attorney.
2. Don’t withdraw money from your retirement savings to live off of. Withdrawing money opens the account to being accessible by creditors when it otherwise wouldn’t be. Again, be sure you talk to an attorney before withdrawing money from your retirement savings.
3. Never use the account as loan collateral. Using it as collateral will keep the account from being protected.
Before you decide to file for bankruptcy, it’s imperative that you consult with an attorney. If you have further questions or concerns about bankruptcy, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us.
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