How Does Bankruptcy Affect My Retirement?
For individuals nearing retirement, the last thing they want to think about is bankruptcy. But what many don't realize is that bankruptcy can have a significant impact on retirement savings.
When someone files for bankruptcy, all of their assets become property of the bankruptcy estate. This includes any retirement accounts, such as 401(k)s or IRAs. The trustee assigned to the case will then liquidate these assets to pay off creditors.
While there are some exceptions, generally speaking, most people who file for bankruptcy will see a significant depletion of their retirement savings. This can be a hard pill to swallow for those who have been diligently saving for years.
There are ways to protect some or all of your retirement savings in bankruptcy, but it's best to consult with an experienced attorney before taking any action.
The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.
Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706