There are many misconceptions about bankruptcy, amongst them is the notion that people lose everything if they file bankruptcy. Fortunately, the bankruptcy laws are designed to give the honest but unfortunate person a second chance. To facilitate that goal, the law allows bankrupt consumers to retain necessities of life. The legal buzzword for necessities of life is exemptions.
The exemption laws allow people to keep Social Security as well as tax deferred retirement accounts and other assets. Tax deferred retirement accounts include 401k plans, 403b plans, IRA’s, pensions and almost any type of employer or union sponsored retirement. Often in the midst of financial turmoil people consider taking a retirement withdrawal to pay credit cards, payday loans or other debts. For some, taking a retirement withdrawal is the best choice but that choice should be made with a clear understanding of all options including bankruptcy.
At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch, and Hercules.