Are money troubles making you worry about your retirement nest egg? Declaring bankruptcy can actually help shield your retirement accounts from creditors. Read on to learn how working with a qualified consumer bankruptcy attorney protects your hard-earned savings.
The Threat of Wage Garnishment
When debts become unmanageable, creditors may try to collect by garnishing your wages. According to CNN, 7.2% of workers in the United States have their paychecks garnished. This means your employer withholds part of your earnings and sends them directly to creditors against your will. It makes an already difficult financial situation even harder.
Bankruptcy Stops Garnishment
Filing for bankruptcy halts any current wage garnishments and prevents new ones in the future. An automatic stay goes into effect that immediately stops creditors from pursuing collections. A consumer bankruptcy attorney can help make sure you take full advantage of this protection. No more surrendering part of each paycheck until debts are paid off.
Retirement Accounts Are Exempt Assets
One of the best protections bankruptcy provides is shielding your retirement nest egg. Certain assets are exempt in bankruptcy, meaning creditors cannot seize their value to satisfy debts. Retirement accounts like 401(k)s and IRAs are generally fully exempt. The bankruptcy exemption for retirement savings applies to both state and federal bankruptcy exemptions. A qualified consumer bankruptcy attorney will ensure you properly claim all exemptions so accounts like your 401(k) remain safeguarded.
Peace of Mind for Your Golden Years
After a bankruptcy discharge, you get to keep your protected retirement savings and restart contributing going forward. Rather than draining your savings account trying to pay off debt, you can resume steadily building it through new contributions. And you have the peace of mind that your retirement funds are legally off-limits to creditors.
Get a Free Consultation
If you're worried about saving your retirement accounts while getting out of debt, meet with a qualified consumer bankruptcy attorney. They will review your unique situation and explain how bankruptcy can help protect you. Many reputable attorneys offer initial consultations, so you can learn your options without commitment.
Declaring bankruptcy helps safeguard what you've worked so hard to save for your future. Partnering with an experienced consumer bankruptcy attorney guides you through the process, so you can protect your retirement accounts. With fresh start, you can focus on rebuilding your nest egg. Call Wiley & Jowers today to schedule your free consultation.
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