Are you looking at cashing in your retirement accounts to pay an overwhelming debt? You might consider consulting a bankruptcy lawyer as an alternative. Here’s why filing bankruptcy may give you financial relief now and when you retire.

Why Bankruptcy Lawyers Say Hold On to Your Retirement Funds

Certain Retirement Accounts Are Protected From Creditors

Federal bankruptcy law and Alabama state laws shield qualified retirement accounts from creditors. Alabama’s Act 2017-317 took effect on August 1, 2017, and it protects money in a variety of tax-preferred retirement accounts as long as the funds stay in the accounts. These accounts include 401(k) plans, 403(b) plans, 457 plans, and individual retirements accounts (IRAs).

You Lose Money When You Cash in Your Retirement Accounts

Taking money out of your IRA or 401(k) early can cost you money, except under limited circumstances. You have to pay early withdrawal penalties and taxes on the money you take out. A financial analysis will show you the impact of that loss on your current and future savings.

Filing Chapter 7 Bankruptcy Eliminates Unsecured Debt Without Making Payments

Bankruptcy lawyers know Chapter 7 brings relief from credit card debt, signature loans, and medical bills. Even if you have student loans, back taxes, or child support payments you can’t discharge, getting rid of your other debt gives you more money to work with once you receive your bankruptcy discharge.

 
Before you decide to pay off debt with your retirement funds, talk to the team at Padgett & Robertson, Attorneys at Law. Serving Southern Alabama, these skilled lawyers have advised and represented clients throughout Mobile and Baldwin County in all aspects of Chapter 7 and Chapter 13 consumer bankruptcy since 1978. Schedule a free consultation, and get a detailed financial analysis from a bankruptcy lawyer Southern Alabama residents trust. Call the law office at (251) 342-0264 or visit their website today.

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.