"NO", and let me count the reasons!
I'm often asked if someone will lose their retirement accounts if they file bankruptcy. The short answer is almost certainly not.
Why do I say retirement plans are your saving grace in bankruptcy? Because you can (almost always) keep all of the money in them if you file bankruptcy, not losing it to your creditors. Let's look as what that means for you.
If you're thinking of filing bankruptcy, here are some things you might be tempted to do that might turn out to be a very bad idea.
If you're paying off credit card balances using money you've taken from your retirement account or received from a home equity loan, you're entering dangerous (financial) territory. Let's take a look at this. (more…)
Are you retired in California, with lots of debt, and considering bankruptcy? Are you also wondering if you will be able to keep your home, your Social Security savings, and your pension savings? The short answer is that you may be able to get rid of those debts in bankruptcy and also keep all those items, even if you have equity in your home (your home is worth more than you owe on it). (more…)