Saving Your Retirement in Bankruptcy

We know people don't want to file for bankruptcy. Even if their financial situation is not of their own doing, many folks find bankruptcy to be embarrassing and feel filing bankruptcy means they've failed. If this sounds like you, it will serve you well to keep in mind that America's Founding Fathers included provisions for our current bankruptcy laws in the United States Constitution. They recognized that we all may need a fresh start from time to time.

Current bankruptcy laws protect retirement dollars from bankruptcy creditors; this means that you DO NOT need to drain retirement accounts to pay your creditors - and - it's just not a good thing to do for many reasons.

DO NOT DRAIN RETIREMENT ACCOUNTS TO AVOID OR DELAY BANKRUPTCY

If you need to take money out of your retirement accounts to feed yourself and your family and you've exhausted all other resources, then go ahead and use your retirement account assets to purchase food.

However, DO NOT, use retirement assets to pay for credit card debts, medical bills, or personal loans. If you are thinking of taking money out of your retirement account, bankruptcy is likely inevitable and the withdrawal will only delay filing for a few months.

If you even consider using retirement funds to pay your bills, consult with a qualified bankruptcy attorney before doing so.

Please Consult with a Bankruptcy Attorney

Even if you're not sure whether bankruptcy is right for you, please consult with a bankruptcy attorney BEFORE you withdraw money from your retirement accounts to pay off creditors. You may end up having to file bankruptcy anyway and you'll be trapped without the security of a retirement fund if you withdraw those assets.

For a free consultation contact one of the attorneys listed on www.attorneys.org. These case evaluations are free - private - and confidential. If you prefer, you can call the bar association for a list of bankruptcy lawyers or ask a friend for a referral.

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