Can you lose your retirement in case of bankruptcy?

Bankruptcy and Retirement Income

Congress exempts most retirement accounts from bankruptcy. However, each state and bankruptcy law has its own set of exceptions, and not all retirement money is protected under bankruptcy status. Learn more about how bankruptcy affects retirement savings and assets.

Will a Reverse Mortgage Help You?

Reverse mortgages are designed to allow you to access the equity in your home without leaving it. Your home equity is the difference between the value of your home and the mortgage balance. If your home is worth $150,000 and you owe $100,000 on the mortgage, you have $50,000 in equity.

Protecting Your Home Equity

Your home equity is one of your most important retirement assets, so it is crucial to consider how to protect it if you file for bankruptcy.

Avoid Using Retirement Accounts to Pay Off Debt

Using your retirement accounts to pay off bankruptcy-related debts is a bad idea, as it utilizes protected money to pay off debts that can be discharged through filing for bankruptcy. Withdrawing funds from your 401(k) or IRA before age 59 and a half also incurs significant tax penalties.

Thank you for using the legal consultation service. You should consult a specialized bankruptcy attorney before taking any action, as it requires careful planning and timing to meet court requirements in the case of bankruptcy.

Source: https://www.thebalancemoney.com/can-you-lose-your-retirement-in-a-bankruptcy-4151957