Sometimes life will throw you an unexpected challenge. It could be the loss of a job or a reduction in pay or hours. It might be an unexpected illness and all of the medical bills that go with it. Regardless of the reason why your finances have changed, a common knee jerk reaction is to start using existing assets to pay off debts. There may be another way.
The attorneys at Tishkoff PLC are here to help you examine all of the options and identify a debt relief plan that does not jeopardize key assets such as your retirement, life savings or home. The sooner you act, the sooner we can find ways to address your debt problems while protecting your assets.
Protect Your Retirement
Cashing out your retirement fund in order to pay off your debts puts your future at risk. It may be possible to protect your retirement and discharge your unsecured debts through bankruptcy. In many cases, Chapter 7, Chapter 11 and Chapter 13 of the Bankruptcy Code will not require the liquidation of tax-exempt retirement accounts such as a 401(k) or an IRA provided by your employer.
Before you jeopardize your future by spending your retirement, speak to a qualified bankruptcy attorney about alternatives. We will take the time to carefully examine your entire situation and explain the options available to you, including the potential advantages and pitfalls.
Chapter 7, Chapter 11 and Chapter 13 of the Bankruptcy Code all discharge unsecured debt while providing contingencies for protecting key assets, such as a retirement account, life savings, home or car.
In addition to retirement accounts, it may be possible to protect other assets such as family heirlooms, financial accounts and real estate. Depending on the situation, there may be provisions within the bankruptcy laws that make it possible to discharge out-of-control debt without having to cash out your life savings or sell your property. Before you use your assets to pay off your debts, explore every option available to you by speaking to a qualified bankruptcy attorney.