Bankruptcy offers many benefits. After a successful bankruptcy, you will no longer be obligated to pay back your credit card debt or medical bills. You could be debt-free after bankruptcy. As soon as you file for bankruptcy, the collection calls must stop. And all other collection action, like wage garnishment or lawsuits for unpaid debt, must stop. Filing for bankruptcy can even give a boost to retirement savings after bankruptcy.
How can bankruptcy boost my retirement savings?
One of the unsung benefits of bankruptcy is the money that is freed up afterwards.
Consider how much money you currently pay toward your debt every month. Are you paying hundreds of dollars or more toward credit card bills or medical bills? Do you owe so much money that you will be paying it off for many years to come?
After bankruptcy, you will no longer owe money on your dischargeable debts, including credit cards, medical bills, personal loans, and certain older tax debts. The money you are currently making toward these payments will be money that is freed up after bankruptcy. This is why many people have more money after filing for bankruptcy.
The freed up funds after bankruptcy can be put toward your retirement funds.
- You can increase your contribution to your 401(k).
- You can put money into an IRA.
- You can make other long-term investments meant to be used in retirement.
Also, your retirement funds are fully protected through bankruptcy. You get to keep the retirement funds you saved in ERISA-qualified retirement accounts before you file. This is why we urge people not to borrow against or withdraw from, their retirement accounts to pay back debt.
The truth is that many Americans are financially unprepared for retirement. We want our clients to get the most out of their bankruptcy filing, and part of that is exploring the wise financial choices that can be made after bankruptcy.
Some people erroneously view bankruptcy as financial ruin, but bankruptcy can create an opportunity to take control of your finances. The monthly payments you are making toward debts that will be erased in bankruptcy will be money available to fund retirement, stash emergency savings, or to put toward other financial investments.
Deciding Bankruptcy Is the Right Choice for You
Here at the Law Office of Barbara B. Braziel, we will make sure you understand the benefits of bankruptcy and how filing with affect you and your family. We file hundreds of Chapter 7 and 13 bankruptcy cases every year. But our clients are never just a number. You will not be left in the hands of a paralegal. You will have access to your attorney throughout your bankruptcy case.
Find out more about Bankruptcy in our guide: All About Bankruptcy
The Law Offices of Barbara B. Braziel proudly serves Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City, GA.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.