|Image courtesy of Vichaya Kiatying-Angsulee |
The purpose of bankruptcy is to help people get back on track. The law recognizes that retirement savings is important to stay on track after everything is done. As a result, most retirement accounts that are funded by pre-tax dollars from an employer or hold tax exempt money deposited by the account owner are fully exempt from creditors in a bankruptcy case, That means 100% of the money in a retirement account may be protected and the debtor would be allowed to keep it.
Having money in a retirement account should not stop a person from filing bankruptcy. A retirement account may be a reason to file bankruptcy. Because the money may be protected, thinking about tapping into that account may be the warning sign people need to admit it is time to file for bankruptcy.
If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.
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