#8 of 33 Things Not to Do When You Are About to File for Bankruptcy

Posted by on Sep 15, 2014 in Bankruptcy | 0 comments

#8 of 33 Things Not to Do When You Are About to File for Bankruptcy

Don’t cash out retirement plans or 401(k) plans.  In most cases, these funds are exempt from the reach of the bankruptcy courts and can be kept.  If you see that you may need to file, leave those funds in place so you have something saved for later years.

 

I see many, many clients who use up their entire 401(k) before they come to see me.  If things are to the point that you have to take money from your retirement, don’t wait.  See a bankruptcy attorney before it gets worse.  I know lots of people think, “Well, I’ll take some from my retirement and I’ll put it back when things are better.”  Sometimes, things just keep getting worse and you wind up taking it all from retirement.  Be realistic about your situation and talk to an attorney early in the process.

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