Should I Use My Retirement Account To Pay Off Debt?
When it comes to debt consolidation and your future financial stability
, the answer to this question is no. You should not use your retirement account to pay off your debts. Your retirement fund is one of the assets that is exempt from liquidation, during a bankruptcy proceeding. And, while the government understands the ramifications of debt relief, it also understands your need for security in the future.If you are facing a financial crisis that has left you wondering whether you should drain your 401(k), IRA or other retirement savings or file a petition for bankruptcy, get on the phone and speak with a bankruptcy attorney to discuss your options. Settling your present debts at the cost of your future security is actually counterproductive. Eliminating your 401(k) or IRA could leave you struggling through your retirement or force you to continue working as opposed to enjoying the fruits and freedom of your hard earned labors.
Personal bankruptcy options, such as Chapters 7 and 13, make concessions for debtors regarding their retirement funds, and make them exempt from liquidation and there are no caps or exceptions to this exemption. So, if youre struggling with debt, you may want to consider debt relief through the courts.
CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy is also known as a liquidation proceeding, and it is typically utilized by debtors who have very little in terms of assets (i.e., a house, disposable income, stocks, etc.). This chapter of debt relief is the timeliest and can actually be completed in as little as a few weeks.
CHAPTER 13 BANKRUPTCY
Chapter 13 Bankruptcy is also known as the repayment plan. This type of debt relief permits debtors to meet with an attorney and draft a three to five year payment plan that will allow them to catch up on their bills and maintain a number of their assets (i.e., their primary residences, their primary vehicles, etc.)
In both chapters, petitioners are allowed to maintain their 401(k)s, IRAs and other retirement funds to preserve the futures they have worked so hard to secure. Dealing with creditors, Warrants of Debts, foreclosure proceedings and repossessions can be very taxing both financially and emotionally, but the compulsion to trade in your future should be thrown away.
Before you decide to settle your debts by cashing in on your savings for retirement, get in touch with a bankruptcy attorney. Legal measures can put a stop to harassing phone calls, debt related litigation, foreclosure proceedings, repossessions and garnishments without risking your future. If you are in need of debt relief, contact a legal representative today. A free consultation can help you picture a much brighter future.
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