Fort Worth's Bankruptcy Options: Safeguarding Retirement Assets with ERISA Section
401(k)
According to the US bankruptcy statute and consumer laws, Chapter 7 or Chapter 13 bankruptcy petitions filed by individuals are the most common. Both bankruptcy procedures offer a legitimate way for people and businesses to get rid of certain obligations and start over financially. Your income must be lower than the Texas median income or equal to it in order to qualify for Chapter 7 bankruptcy in Fort Worth, Texas. To determine whether you have sufficient discretionary income to settle your outstanding debts and other commitments, you must also pass a second test. The Chapter 7 bankruptcy option, however, might not always be available to you. For example, if you filed for bankruptcy within the last eight years, you cannot file for Chapter 7 bankruptcy in Fort Worth.
In order to file for Chapter 7 bankruptcy, you must submit a petition, and schedule detailing of your income and assets. It's critical that you refrain from taking on new debt if you want to benefit fully from Chapter 7 bankruptcy Fort Worth. A bankruptcy trustee is appointed to sell off nonexempt assets in order to pay creditors, and bankruptcy is a serious matter. Recovery Law Group has knowledgeable attorneys who can assist you at every stage of filing for Chapter 7 bankruptcy in Fort Worth if you believe the bankruptcy process overall to be complicated and feel the need for legal counsel.
Automatic halt to the harassment of creditors
Within six months of filing for bankruptcy, Chapter 7 bankruptcy Fort Worth filers are expected to attend credit counseling. Unsecured debt is divided into groups that are paid off in order of priority. Priority unsecured debts like child support and tax arrears are paid off first. To start the Chapter 7 bankruptcy Fort Worth process officially, your bankruptcy attorney must prepare a number of forms, including a petition to the court. Under Chapter 7 bankruptcy, which exempts the debtor from any personal accountability for payment, the majority of your debts will be discharged. Furthermore, when you file for Chapter 7 bankruptcy, all collection efforts by creditors against you, including as wage garnishment, collection calls, and foreclosures, are automatically halted.
Protecting your retirement assets
Additionally, filing for bankruptcy enables you to maintain your 401(k) retirement money. With a few exceptions, such as an IRA (Individual Retirement Account) that is exempt up to $1,245,475 per person, all funds in retirement accounts are protected. The knowledgeable lawyers at Recovery Law Group can provide you with the best legal counsel if you're considering your alternatives for keeping my 401(k) in bankruptcy. For instance, you shouldn't withdraw money from your retirement account because doing so will turn it into a nonexempt asset. Do not deposit money from other accounts into your retirement account if you want to keep my 401(k) in bankruptcy. Trying to turn your non-exempt assets into exempt ones during bankruptcy is not looked upon kindly. The bankruptcy estate excludes almost all pension and 401(k) savings plans that are eligible under federal ERISA (Employee Retirement Income Security Act).