Finding Financial Relief: Chapter 7 Bankruptcy And Safeguarding Your Retirement Funds

Bankruptcy by individuals is most often filed under Chapter 7 or Chapter 13, under the US bankruptcy code and consumer laws. Both bankruptcy processes provide a legal route for individuals and businesses to discharge certain types of debts and give a fresh financial start to their life. To be eligible for Chapter 7 bankruptcy Fort Worth, Texas, your income should be lower or equal to Texas’ median income. You must also pass a second test to assess whether you have enough discretionary income to pay off your outstanding debts and other obligations. However, Chapter 7 bankruptcy option may not always be available to you, like if you cannot file for Chapter 7 bankruptcy Fort Worth if you have filed for bankruptcy within the last eight years.   

In order to file for Chapter 7 bankruptcy, you must complete a petition, and schedule detailing of your income and assets. To take full advantage of Chapter 7 bankruptcy Fort Worth, it is important that you do not incur additional debts. Bankruptcy is a serious business wherein a bankruptcy trustee is appointed to liquidate nonexempt assets to pay creditors. If you feel the whole process of filing for bankruptcy is complicated one, and feel the need of legal counsel, Recovery Law Group has expert attorneys who can help you at each step of filing for Chapter 7 bankruptcy Fort Worth.   

Automatic stay on creditors’ harassments   

Filers of Chapter 7 bankruptcy Fort Worth are required to undergo credit counseling within six months of filing for bankruptcy. Unsecured debt is separated into classes, each on receiving priority on payment. Unsecured priority debts, such as child support and tax debts are paid first. Your bankruptcy attorney will complete several forms, including a petition to the court, to begin the official Chapter 7 bankruptcy Fort Worth. Most of your debts will be discharged under Chapter 7 bankruptcy, that releases the debtor from any personal liability for payment. Moreover, when you file for bankruptcy under Chapter 7, it puts an automatic stay on the creditors’ harassment, and other collection actions against you, including wage garnishments, collection calls, and foreclosures.   

Keeping your retirement funds protected   

Moreover, bankruptcy allows you to keep your retirement funds under 401(k). All funds in retirement accounts are protected with a few exceptions, like and IRA (Individual Retirement Account) is exempt up to $1,245,475 per person. If you are looking for options to keep my 401(k) in bankruptcy, Recovery Law Group’s experienced attorneys will help you with the right legal advice in this regard. For example, you should not take money out of your retirement account, as this step will convert it from an exempt property into a nonexempt property. Also, to be successful with your legal options to keep my 401(k) in bankruptcy, do not deposit money from other accounts into your retirement account, as trying to convert your non-exempt assets into an exempt one is not looked upon kindly during bankruptcy. Almost all pension, and 401(k) savings plans, which are qualified under federal ERISA (Employee Retirement Income Security Act), are excluded from the bankruptcy estate.  

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Created on Jun 5th 2023 03:05. Viewed 116 times.

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