Using Your Retirement to Pay Debt? Despite warnings from financial experts, more debtors are withdrawing money from their retirement account to pay off debt and avoid bankruptcy. But early withdrawal of money from a retirement account, even if it is in the form of a loan, can have terrible consequences for the debtor. Below are [...]
Many analysts suspect that unemployment benefits will not be extended and already millions of Americans have exhausted their access to those benefits. Many of these so-called 99ers are at the end of their rope and are deciding to exhaust all of their resources including retirement accounts without considering the long-term consequences of doing so. Here's [...]
Many debtors ask about what they should do before filing bankruptcy; but what about the things that debtors shouldn't do before filing bankruptcy? Things debtors should avoid before filing bankruptcy: Don't raid your retirement account in an attempt to repay debtors if you are considering bankruptcy. A matter of fact, don't raid your retirement account [...]
Under 2005 bankruptcy reform, IRAs now enjoy projection when a debtor files for bankruptcy. Traditional and Roth IRA accounts with up to $1,171,650 in them are protected from creditor seizure during bankruptcy. That amount is reviewed very three years and may be increased based on the consumer price index (CPI). However, the $1,171,650 limit on IRA's doesn't [...]
In the bankruptcy case of Radinick, Kimberly A.; In re (Bohm, Trustee, v. Radinick), the bankruptcy court ruled that any interest in a debtor's estranged spouse's property which was awarded to the debtor in a divorce action would be property of the bankruptcy estate. The details of the bankruptcy case: The debtor filed for divorce [...]
Already U.S. life expectance is 80 years and the CDC predicts that many Americans could live to be 100 years old. But what does that extra 20 years of life mean for America's retirees? It could mean that filing bankruptcy before your retirement may be more necessary for some, as nearly 50 percent of Americans [...]
Many debtors finding it difficult to keep up with their bills are tempted to borrow against their retirement funds to keep their head above water. Reductions in salary and especially unemployment can appear to be legitimate reasons for raiding a retirement fund; but doing so may not offer the relief they need. Before borrowing from [...]
If your employer files for bankruptcy your retirement plan could be at risk. Here's what you need to know: If your employer files Chapter 7 bankruptcy, which is a total liquidation, your pension plan will be automatically terminated. Pension plans which are terminated in Chapter 7 bankruptcy are insured by the Pension Benefit Guaranty Corporation; [...]
In the Chapter 7 bankruptcy case of Kunkelman, Jeffrey D.; In re, the bankruptcy court ruled that a debtor's retirement contributions must be included in his disposable income and dismissed his Chapter 7 bankruptcy case. The details of the bankruptcy case: "The Chapter 7 debtor had one secured debt of $10,731 and unsecured debts of [...]
Many senior citizens and even those younger debtors who are considering bankruptcy may be reluctant to file because they mistakenly believe that they will lose their retirement savings. Let's get the record straight, retirement accounts are generally protected from seizure in both a Chapter 13 bankruptcy and a Chapter 7 bankruptcy . In the case [...]
