How do I know which type of bankruptcy is best for my situation?

Only a knowledgeable bankruptcy attorney or group can make that determination for you. If you are a business with secured debts, you are subject to different laws than someone filing for personal bankruptcy. Different bankruptcy chapters vary on what laws govern your personal property and how much of your income or assets can be seized as repayment to your creditors. Always seek professional opinion before making any decisions.

Can a bankruptcy affect my retirement and 401k?

Thanks to new bankruptcy laws most retirement programs and 401k’s are exempt from being considered part of a person’s estate. The retirement must have an anti-alienation clause that exempts them from being seized by outside creditors. There are exceptions such as in the cases of self-employed plans but even these can fall under exemption rules. There is a cap on how much retirement is allowed before the remainder is seized as an asset. That cap, under the new bankruptcy laws, is one million dollars.

Can my student loans be counted in my bankruptcy agreement?

The Federal government does not allow student loans to be discharged in bankruptcy. They cannot be discharged at all. If you are filing for bankruptcy you will need to notify your attorney of your outstanding student loans. You will then need to contact your lender to make arrangements for repayment. Most lenders can work out a plan that fits your financial situation and can even postpone payments for a set amount of time due to hardship.

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This entry was posted on Wednesday, January 2nd, 2008 at 10:57 pm and is filed under Financial Services. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.