One of the many questions that the clients of our bankruptcy law lawyer in Orange County ask is the safety of their retirement assets. Are they safe in bankruptcy?
The good thing is that your retirement assets are protected from your creditors when you file for bankruptcy.
Most of us would likely to eliminate retirement contributions when our money is tight. People do this to help them in paying their credit card debts.
But this method of repaying your debt will only make sense in the short run. The IRA will not call you as soon as you stop funding your 401(k).
Reducing your retirement contributions will make you regret it when you need it. When you retire, paying your debt will be more difficult. Thus, it is better to pay it ahead of time so you can stretch your savings.
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