Clarifying the Myths About Bankruptcy and Your Retirement Savings
Many people who could benefit from bankruptcy often decide not to do so because they don't understand their rights. One of the more common misconceptions about bankruptcy is that your retirement accounts can be seized to repay your creditors. This is not true. The Supreme Court has ruled that 401(k)s and other types of ERISA qualified retirement accounts are exempt property in bankruptcy proceedings.
There are heart-wrenching stories of people in financial difficulty who cash in their retirement accounts, take the massive penalties and use the money that is left to try to get caught up on their bills. These people are giving away their nest eggs when, in all likelihood, they could have filed for bankruptcy, received the debt relief they needed and preserved their retirement savings accounts.
Before You Do Anything, Talk to a Lawyer
At the Law Offices of Farnsworth Mortensen, PLLC, our team of attorneys is dedicated to helping people find the debt relief they need without sacrificing their futures. From our offices in Tucson and Mesa, we represent people across Arizona, providing a broad range of consumer bankruptcy and other debt relief services.
We understand how overwhelming it can be to face financial hardship and the inclination to cash in or sell everything you can to get back on track. Before you attempt to work things out on your own, you would do well to explore your other options with one of our attorneys. We will provide a complete review of your circumstances and explain the different solutions that are available to you.
Schedule a Free Initial Consultation
Contact our office today to discuss your bankruptcy questions with one of our attorneys. We will take the time to answer all your questions and give you our best recommendation about how to proceed. It won't cost you anything to learn more about your debt relief options and what we can do to help you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
