Personal Bankruptcy & Retirement Accounts
Retirement Savings may be Protected by Filing Bankruptcy
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For many Americans, a retirement account is a valuable asset—and for some, it's the most valuable. Perhaps that's why, as a source of future income, a retirement savings can be both a source of security and of worry.
Those facing unmanageable debt often worry that creditors will come after their retirement accounts. Some even withdraw or spend their savings in order to prevent that from happening. However, this may only make matters worse.
If you're struggling with debt, it's important to know that most or all of your retirement savings may be protected—even if you file bankruptcy.
The laws protecting retirement accounts vary depending on your age, state and type of account. For a more detailed review of your financial situation, connect with a local bankruptcy attorney. Simply fill out the free form below or call 877-833-2410 to connect with an attorney near you and take the next step in protecting your assets
Bankruptcy May Protect Retirement Accounts
Bankruptcy laws provide certain protections for retirement accounts. Depending on the type of retirement savings, you may be entitled to keep all of it safe from creditors.
Most employer-sponsored plans, such as 401(k) plans, are covered by a federal law known as Erisa, or the Employee Retirement Income Security Act, and are completely protected against most creditors in bankruptcy.
For individual retirement accounts, or IRAs, federal law protects up to $1 million dollars. If the IRA was rolled over from a 401(k), the entire amount may be protected.
However, accounts that are not designated as retirement accounts, such as regular bank savings, may receive no protection at all from creditors.
When It Comes to Your Financial Future, You Have Options!
Since retirement accounts are protected in most bankruptcy cases, think carefully about whether you want to gut your 401(k) or IRA to put a small dent in bills that are unmanageable.
Before you make any decisions, learn how filing personal bankruptcy may be able to provide you with a fresh start in the present without having to compromise your future.
Simply fill out our free form or call toll-free 877-833-2410 today to speak with a local bankruptcy lawyer in your area.