How Chapter 7 Bankruptcy Effects Retirement Accounts

Recent research points to a new trend in retirement – a rise of the average age. In previous decades, individuals could afford to retire while in their mid fifties (on average). Nowadays, people are working well into their seventies before hitting the golden time of retirement. One argument for this is that people are working out of necessity or enjoy the interaction work gives them. Regardless of motive working allows individuals to save money in a 401K account which could eventually fund retirement. But people who are considering Chapter 7 Bankruptcy often wonder – how will Chapter 7 affect my retirement?

It is important to understand reasons for filing Chapter 7 Bankruptcy. There are several possibilities which may effect different people´s situations. Many people also need to be reminded that bankruptcy is not always the result of poor financial behavior. Filing can occur for a number of reasons including:

  • A serious illness that has depleted available funds
  • A serious change in the economy
  • A natural disaster or accident which has severely damaged a home or vehicle

And these are just a few of the possible reasons.

With a proper legal strategy, retirement accounts can be protected by a Chapter 7 bankruptcy. Patel Law firm specializes in crafting unique strategies to protect your hard earned retirement funds. There are certain VA Codes which experienced attorneys know how to utilize to protect hard earn retirement accounts. Consulting with an experienced attorney is highly recommended to guide you through the Chapter 7 process as well as provide counseling afterwards to help restore credit. Don´t get blindsided by complicated bankruptcy laws, hire an expert to help you with your case.

Please call or email with your questions today!