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How does bankruptcy impact retirement savings? Atlanta, GA

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How does bankruptcy impact retirement savings?

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For older Atlanta residents who are struggling to pay all of their bills and stay current on debt, one of the main concerns they have when considering bankruptcy is their retirement savings. Particularly for those who are already retired and living on a fixed income, filing for bankruptcy to restructure debt can be a scary proposition if it means risking the loss of those important savings that you need to stay afloat.

An important aspect of evaluating the impact of bankruptcy on retirement is timing, since retirement accounts are protected from creditors while that money remains segregated from funds used for daily expenses.

This means that if someone is filing for bankruptcy and takes money out of their retirement account to use for rent, groceries, or other every day needs, then the money is no longer afforded protection as retirement funds. Now it is simply considered cash on hand and will be a factor in determining how much debt someone can pay off.

However, when the money is in the retirement account it remains inaccessible, so distressed borrowers can discharge debt while still saving for retirement. This rule may seem confusing to some, but bankruptcy laws are designed to help people start over and move forward to financial solvency, rather than to set them back and undo a lifetime of work and honest savings.

So, when considering whether or not filing for bankruptcy will negatively impact retirement, consider the timing of the filing and retirement plans and discuss these issues with a qualified and experienced professional. Each bankruptcy case is different and has unique aspects, so while general rules can apply and be used as guidance, there may be exceptions to the rule.

Source: Fox Business, “Will my 401(k) be Safe if I File for Bankruptcy?” Justin Harelik, June 19, 2013.

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

Phone: (404) 685-8800

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Gingold & Gingold LLC
5.0 / 5.0

Based on 28 reviews

Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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