Losing a job can be tough. If you are fortunate to have unemployment income, you may still have a hard time making ends meet. While many people are inclined to say if they just used a little of their 401(k), they can get by until they get their next job lined up.
Wait!
Retirement savings in protected plans like 401(k)s are completely protected in bankruptcy. If you withdraw those funds now to pay debt, you may face large penalties, including income tax debt. In a bankruptcy case, we can help address your debts without monetary penalties or tax implications. Those retirement dollars you use today are worth substantially more long-term if kept safely in your retirement.
The other trap to avoid is taking an Equity Line on your home. Equity Lines of Credit place mortgages on your homes that must be paid off in full or you risk losing your home. These debts absolutely must be paid.
Call us today at 502-339-0222 to schedule a free consultation to discuss if bankruptcy is the right option for you. Make an informed decision!
