Skip to main content

Wondering how to keep my retirement in bankruptcy, here is how to do it 

Bankruptcy has a certain stigma attached to it, but there could be many compelling reasons to consider this. One of the key advantages of filing for bankruptcy is that it will let you achieve relief from unmanageable debt by either eliminating or restructuring the debt, thus making it easier to handle. Not everything is liquidated or sold in bankruptcy, there are certain assets that cannot be liquidated under Chapter 7 and Chapter 13 bankruptcies, such as a home and a vehicle of certain equity, tools, of trade, household goods, clothing, and retirement accounts.    

   

If you are wondering whether I will be able to keep my retirement in bankruptcy, then the answer is yes. Most pension plans, and retirement accounts such as 401(K)(s), and 404(B)(s), are protected from creditors during bankruptcy. This is done to ensure that the debtor’s long-term is not jeopardized under bankruptcy. The provisions of the US Bankruptcy Code allow an individual to keep my retirement in bankruptcy, and ensure that the individual can preserve funds set aside for their future, even if they are struggling with other financial obligations.    

   

Retirement accounts are exempt in bankruptcy    

Under federal laws, 401(K)(s) and 404(B)(s) accounts, and IRAs are often exempt from being included in the bankruptcy estate, and hence are protected. While 401(K)(s) and 404(B)(s) enjoy unlimited protection, IRAs usually have protection limits of approximately $1.5 million. If you are looking for ways how to keep my retirement in bankruptcy, you can consult the specialist bankruptcy lawyers at Recovery Law Group, who can help you with your state’s specific exemptions, as state exemptions laws vary from that of the federal laws. Some states may even offer broader protections to keep my retirement in bankruptcy. Recovery Law Group’s specialist bankruptcy lawyers are familiar with these exemption laws, and understand how these laws will apply to your situation.    

   

Navigating the complexities of bankruptcy    

However, in order to keep my retirement in bankruptcy, it’s crucial to maintain clear records of your retirement accounts, and ensure that they are separate from any other accounts that you may have. Mixing retirement funds with non-retirement assets can complicate the bankruptcy process. Your specialist bankruptcy attorney can help you navigate the complexities of the US Bankruptcy Code and bankruptcy laws, and ensure that you understand your rights in bankruptcy, and advise you on the best strategies to preserve your retirement savings. You can seek bankruptcy protection and explore options to keep my retirement in bankruptcy under Chapter 7 bankruptcy, provided you seek the Means Test.    

   

Debt reorganization plan by the court trustee    

To qualify for the test, your average monthly income for the past six months should be less than the average monthly income of the size of your family in your state. If you qualify for the test, you will be allowed to file for Chapter 7 bankruptcy, and most of your unsecured debts will be discharged or eliminated. Else, you can file for Chapter 13 bankruptcy, wherein a repayment plan will be worked out under the supervision of a federal court-appointed trustee wherein you will be allowed to repay your outstanding debts over a period of three to five years. Any outstanding debt after the completion of the bankruptcy will be discharged.   

   

Both Chapter 7 and Chapter 13 bankruptcies will give you the protection of Automatic Stay, wherein your creditors are prohibited from contacting you for debt recovery when you are able to successfully file for bankruptcy. If they continue to do so, simply inform your Recovery Law Group’s attorney, and they will sue your creditors for violating the Automatic Stay.    

  

  

 

Labels:

Comments

Post a Comment

Popular posts from this blog

Bankruptcy consultation Austin TX to provide relief to individuals from overwhelming debt burden

  Many people facing the challenge of managing their overwhelming debts resort to bankruptcy to get relief from debts that they cannot repay. This legal process is designed not only to give relief to the creditors but also ensure that creditors receive some payment based on the borrower’s financial situation and assets. One of the key benefits of bankruptcy consultation Austin TX with an experienced law firm, such as Recovery Law Group, is that your attorney will help halt all creditor actions against you, including foreclosure, repossession, wage garnishments, and harassment calls .         Majority of bankruptcy cases filed in Austin TX are under Chapter 7 of the US Bankruptcy Code. It allows for the complete elimination of covered debt, and is available to those whose monthly income is below the state’s median income for their household size. If your income is above the state’s median income, you may still qualify for Chapter 7 during your bankruptcy c...
Post a Comment
Read more

Know your rights against debt collectors discrimination while filing for bankruptcy in Denver

If you are struggling with debt, wage garnishments, tax liens, foreclosures, or mortgage payments, filing bankruptcy Denver in Colorado could be the right option for you that will help you put your finances back on track. Most of the individual bankruptcies in the USA are filed either under Chapter 7 or Chapter 13. Chapter 7 bankruptcy will discharge most of your unsecured debts, such as credit card bills and medical bills. However, you must liquidate your property to repay some or all of your unsecured debts if you have nonexempt assets, such as a second home, or investments like stocks and bonds. However, if you have no valuable assets and only exempt property, such as household goods, your specialist bankruptcy attorneys at Recovery Law Group can help you in repaying no part of your unsecured debt.    For filing bankruptcy Denver , you need to pass a Means Test. However, if you do not qualify for Chapter 7 bankruptcy, you may be advised to file for it under Chapter 13, also...
Post a Comment
Read more

Hire bankruptcy attorney in Reno, Nevada to get rid of your overwhelming debts and creditors’ harassment

Bankruptcy provides financial relief to debt-ridden individuals in the form of restructured debt repayment plan, or liquidation of certain assets to help pay a portion of debt to creditors. Bankruptcy is a court-supervised process wherein one legally declares their inability to pay outstanding debts. The US Bankruptcy Code governs all bankruptcies in the country, wherein a federal judge oversees the court and makes all the important decisions. A court-appointed trustee will either have debts settled by selling off the debtor’s assets, or work out a new repayment plan for your creditors.   When you hire bankruptcy attorney Reno in Nevada from trusted law firm, such as Recovery Law Group, you may be suggested two options for this – which are Chapter 7 or Chapter 13 bankruptcies, which are the most common forms of individual bankruptcies filed in the USA. Under Chapter 7 bankruptcy, you are required to sell your property which is not exempt. The list of exemptions varies from st...
Post a Comment
Read more