One of the most common mistakes people make when they are in debt is using their 401(k) or retirement account to pay down debt. It seems like a sensible option to “just get that credit card paid off,” but it is robbing your future to pay for the past. Worse yet, there are tax and early withdrawal penalties for doing so.
The truth is most creditors cannot touch your IRA or retirement account. Even if they receive a judgment against you in court, they cannot take your retirement. If you want more information on how to obtain the debt relief you need, contact an attorney at Greenwald & Hammond, P.C., for a free consultation.
Protect Your Retirement Account and Your Future With Us
Under the U.S. Bankruptcy Code, money in a qualified retirement plan, 401(k), IRA or Roth IRA is 100 % protected from creditors. These retirement plans are safe from creditors in both Chapter 7 and Chapter 13.
If your IRA is the only resource you have to pay debt, you should consider filing for personal bankruptcy. At Greenwald & Hammond, we have helped hundreds of people in the Greater Denver metro area get back on their feet by filing for personal bankruptcy.
If You Have Already Taken a Loan From Your 401(k)
You can continue to repay that debt during your bankruptcy; you do not need to forfeit it in a bankruptcy proceeding. If you are making retirement contributions, you can continue to make them or you can start to make contributions when the bankruptcy is complete and you have fewer bills to pay.
Get Back on Track for Retirement
Many people are surprised to learn that they can continue to contribute to their retirement fund even after they have filed for bankruptcy. This is true under both Chapter 7 and Chapter 13 bankruptcy.
Consult With Our Bankruptcy Lawyers Regarding the Protection of Your Retirement
When you are ready for real solutions, contact the law office of Greenwald & Hammond, P.C. real lawyers for real people. Your initial consultation is free. We serve clients throughout the Denver metro area and beyond, in Aurora, Brighton, Broomfield, Arvada, Golden, Littleton and Parker.