Don’t Risk Your Retirement

One of the most common and tragic mistakes people make when they’re trying to pay off debts is withdrawing cash from a retirement account or obtaining a loan based on your retirement assets. Many people are not aware that this is a dangerous way to attempt to pay mounting debts. In the Chicago area, if you’re facing crippling debt, speak first to an experienced Chicago bankruptcy lawyer. A good bankruptcy lawyer can assess your situation and determine if bankruptcy or some other option is the best way to deal with your debts. Do not – this is important – do not withdraw retirement funds or obtain a loan using a retirement account as collateral.

Pension proceeds, 401(k) accounts, 403(b) accounts, IRAs, and Roth IRAs are exempt assets that cannot be taken away in a bankruptcy. When debts are mounting, these are assets you want to hold and not lose. Creditors cannot garnish or otherwise obtain any funds that you hold in a qualified retirement account. If you withdraw or transfer retirement funds to pay your daily living expenses for a few months, creditors may be able to take funds from a checking account. A good Chicago bankruptcy lawyer will look at your finances and determine if bankruptcy is right for you or if your situation offers other alternatives. He or she will explain precisely what you can lose and what is exempted when you file for bankruptcy.

Don’t make the mistake that so many make: withdrawing thousands of dollars from a retirement fund, trying to pay rising debts over a period of years, and eventually filing for bankruptcy anyway. A simple, brief consultation with a good bankruptcy lawyer can save you more than money in the long run. For many, retirement funds are the only guarantee of a dignified, quality retirement. Don’t make a mistake you’ll regret; if your debts are mounting, instead of risking your retirement, instead speak at once to an experienced Chicago bankruptcy lawyer, and get the legal and financial advice you really need.