Struggling to Make Ends Meet? Do NOT Cash Out That 401K/IRA!
If you, like 10% of the population of the U.S. are unemployed with a family (or even just yourself) to support, you may find it tempting, indeed, to cash out that 401K or IRA fund.
Don’t Do It!
The knowledgeable and experienced bankruptcy attorneys at Legal Helpers want you to know that your 401K or IRA (Individual Retirement Account) has near-absolute protection in a personal bankruptcy. If you are filing for a Chapter 7 or Chapter 13 personal bankruptcy, your qualified retirement plan cannot be seized by creditors! According to Legal Helpers lawyers the worst thing you can do is cash out these plans.
In an article from www.istockanalyst.com, “a Hewitt Associates study shows that 46 percent of workers with 401(k) plans who lost or switched jobs cashed the plans in… that could lead to serious problems when younger generations of people working today reach retirement.”
Although this may, on the surface, seem like an easy way to pay your bills and make ends meet, it is actually financial sabotage. Your creditors and other advisors may encourage you to go down this treacherous path; the only reason they are suggesting this is so they can get paid!
This may seem like a good idea when you do it. However, what happens when the IRS comes knocking on your door and your credit card bills are due? What happens to your home when you miss a couple of mortgage or rent payments? You won’t be able to sleep nights when the IRS demands it taxes, the credit card companies look for their payment and the mortgage company starts foreclosure proceedings. There go your FICO scores, too.
Before you do anything, please talk to a qualified bankruptcy attorney at Legal Helpers. Call them now at 800-260-1402. Safeguard your money.
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