Bankruptcy And Retirement

bankruptcy and retirement

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Bankruptcy and Retirement , How It Affects You

Bankruptcy and retirement has its affects.The thought of filing for bankruptcy is scary to most people regardless of whether they file Chapter 7 or Chapter 13 bankruptcy. Many put off filing because they’re afraid of losing everything, including their retirement money. However, that isn’t necessarily what will happen. If you’re facing the possibility of bankruptcy, here’s what you need to know.

Discharging Debt

The bankruptcy courts offer exemptions for many assets, meaning that bankruptcy probably won’t wipe you out completely. These exemptions allow people who file for bankruptcy to keep many of their assets. Talking to a bankruptcy attorney will help you determine which assets you can keep and which assets you’ll likely have to sell in order to pay your creditors.

Retirement Accounts

Some assets, including some retirement accounts, are protected from creditors when you file for bankruptcy. That being said, some exceptions to this rule exist. Most people can keep just over $1.3 million dollars per person in their retirement accounts even if they file for bankruptcy.

Any number over the court-protected amount will be taken to pay off the debtor’s creditors. Most people don’t know what they’ve invested in their retirement accounts. Hopefully, you are not one of them. If you think that you are, find out how much you have in your accounts before you file. If you have more than the legally protected amount, you’ll have to give up any money you have over the protected $1.3 million.

Saving Before And After Bankruptcy For Retirement

In many ways, it’ll be easier for you to save money after you’ve filed for bankruptcy. All your debts and the late fees go away, leaving you with more money. If you’d like to extend the reach of the money you do have, think about implementing some money-saving strategies. If you receive any money unexpectedly, put it into savings. Stop going out to restaurants for lunch. Instead, pack lunches and cook from scratch for other meals. Get rid of subscriptions to magazines, book clubs, and other “extras.” By living more frugally and saving any unexpected money that you receive, eventually, you’ll build your savings accounts back up.

Nowadays, filing for bankruptcy doesn’t mean you’ll lose everything. The courts allow debtors many exemptions. These exemptions include many household items such as cars and other important assets, like retirement accounts. If bankruptcy-related worries have been keeping you from filing, you owe it to yourself to talk to an attorney. Debt relief could be just around the corner.

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

What You Need To Buy A House
Home Ownership

What You Need To Buy A House

What You Need to Buy a House in 2020 You are about to embark on one of the most amazing and rewarding experiences that can

bankruptcy and retirement
Credit Repair

Bankruptcy And Retirement

Bankruptcy and Retirement , How It Affects You Bankruptcy and retirement has its affects.The thought of filing for bankruptcy is scary to most people regardless

Are you looking to buy a home?

We're actually partnered with a great company that helps people get approved for Home Loans whom had previous credit issues. Once you complete our program you are connected with them to start the loan process.

Our program enables you to pay per deletion, if we do not remove any negative accounts from your credit reports you do not owe us a dime.The great thing about our program is that you pay only for the accounts that we successfully remove from your credit reports."YOU PAY ONLY IF WE GET RESULTS"

Learn More
FREE CREDIT TIPSEmailed Weekly From My Credit Jump
Call Now Button