Tuesday, December 13, 2022

Bankruptcy - 401(k) ‘hardship’ withdrawals - there may be another option

Image courtesy of
Vichaya Kiatying-Angsulee

at FreeDigitalPhotos.net
I have written on this topic a few time before but It seems worth mentioning again. Your retirement saving may be safe from creditors as long as it remains in your retirement account.
I found this article:

401(k) ‘hardship’ withdrawals hit record high, Vanguard says — another sign households feel the pinch of inflation  PUBLISHED THU, DEC 8 2022 on CNBC by Greg Iacurci @GREGIACURCI

"The share of retirement savers who withdrew money from a 401(k) plan to cover a financial hardship hit a record high in October, according to data from Vanguard Group..."

The market has been turbulent and most accounts are down. A person should ask themselves "is this really the time to withdraw from retirement accounts." It is bad enough to sell in a down market but selling your future off in a down market while in carrying unmanageable debt seems to compound the problem. Finally, if a person uses retirement savings to try to get out of debt and is not successful causing  them to file bankruptcy, that is just good money after bad. Bankruptcy not only gets people back on track in the present but can protect their future as well.   

You can also check out some of my other blog entries:

Why you should not borrow from your retirement fund...

Bankruptcy - I cannot say it any better than this: "Bankruptcy is an excellent retirement strategy"

If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm Medvesky Law Office, LLC at http://www.medveskylaw.com/

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