The topic of retirement is frequently extremely important when identifying how to deal with economic problems. Bankruptcy clients frequently wonder whether they will have the ability to maintain retirement accounts in case of filling bankruptcy in Dalton, GA.
Retirement Accounts are Protected in Bankruptcy
The decision to empty your retirement accounts prior to speaking with a Dalton bankruptcy attorney can be an unfortunate one, because lots of people simply don’t know that under Bankruptcy Code most retirement accounts are protected through a bankruptcy filing. Consequently, thorough preparation and professional legal assistance could have kept their retirement accounts and solve their debt problems.
The majority of pension plans, retirement, and cash value in life insurance policies are shielded from creditors and also are not lost in a Georgia bankruptcy declaring. Exactly what this implies is that you can maintain your retirement accounts, while discharging your various other financial debts by filing for Chapter 7 or Chapter 13. It is all too typical for individuals and families to consider bankruptcy as the last best hope, rather than for its real nature, which is consumer protection. Sadly, this means that many individuals do not have a free consultation with a bankruptcy attorney up until it is too late. This can turn out to be an expensive blunder as 401( k), 403( b), Roth IRA, SEP, SIMPLE IRA, Keoghs and different financial plans are NOT taken in a bankruptcy to pay creditors. In most cases these ERISA qualified plans are completely exempted from a bankruptcy filing.
Keep Retirement Accounts by Filing Bankruptcy
Think twice if you want to use your retirement account to pay off your debts. You didn’t get this money for no reason and definitely worked hard to put off a reasonable sum to feel comfortable when it’s time to retire. If this is not enough for a reason, additional financial challenges could be created because of early utilization of retirement accounts such as tax implications and penalties.
As an example: If you take a withdrawal from your qualified retirement account before you get 59 1/2, you will go through a 10% early withdrawal fine, so you instantly lose part of your hard gained retirement money right from the word go. Moreover, you will owe income tax obligation on the money that you take as a withdrawal from the retirement account. Such measures rarely help and cost a lot if you still end up filing bankruptcy. Eventually, you will have lost your retirement while paying more of your money to the government.
As a bankruptcy attorney office with many years of experience, Jack Setters recognizes that every situation is different, therefore it remains in your best interest to schedule a free appointment with Bankruptcy Attorney prior to taking any type of withdrawal from your retirement plan to handle your debts. The Bankruptcy Lawyer in Dalton, GA — Jack Setters — will certainly help you determine the very best alternatives for your situation, and put a plan in place to secure your financial future and help you to keep your retirement.