Most people come and see me about 6 months to a year too late. The reason is because people do not know what their rights are concerning bankruptcy and all the protections it provides.
The purpose of bankruptcy is to protect people, allow them to get a fresh start and/or reorganize their financial situation so that they have an incentive to go to work without being harassed by creditors.
Most people do not realize that your Retirement Plan is protected from creditors under bankruptcy law. Under the Federal Bankruptcy Exemptions, 11 USC 523, retirement plans can be exempted. There are a few qualifications concerning this matter; however, for the vast majority of people, their retirement plan is protected from creditors.
Under the Washington State Bankruptcy exemptions, 100% of your retirment plan can be exempt. Once again, there are a few qualifications concerning this matter; however, for the vast majority of people, their retirement plan is protected.
Most people I meet with have tapped into their retirement plan in order to try to “stay afloat” concerning their bills. The reality is that bankruptcy is a smart financial decision for a lot of people to handle their bills and still protect their hard earned retirement funds.
Don’t wait until you have used your retirement funds to make ends meet. If you are considering a withdrawal from your retirement funds, please meet with us first so you can find out what your options are and help you make a smart financial decision.