401k exempt bankruptcy

[mage lang="en|de|en" source="flickr"]401k exempt bankruptcy[/mage]

If you have too much debt and there is no income support, such as your debt payments, then bankruptcy can be filed could be the only option for you.

However, you need to get an idea of what is going bankrupt and how they affect you significantly when you file. Down below the 5 things that you sure to ask before you file for bankruptcy.

1.Find if you are entitled to file: If you can limit more than enough income and asset situation, not you be allowed to file Chapter 7. In such a case may ask the court to Chapter 13, the file is basically a repayment plan designed to help you pay off debt within a period of 3-5 years. Therefore, it is important to you, under what conditions, bankruptcies possible to know.

2.Know what debts are not extinguished be: it is extinguished important to determine these claims that can not be undone or bankruptcy declaration. There are certain debts such as student loans, child support, back taxes, alimony, etc., can not be satisfied or extinguished in bankruptcy. So it's no use, including such debts into your clipboard.

Credit cards and personal loans are debts that can be discharged through bankruptcy filings. But if the fraudulent claims (For example: You have lied on your credit application), then you will not be able to include them in your bankruptcy.

3.Effect on your spouse or cosign: bankruptcy declaration has no effect on your spouse, if his / her name on the debt account. If you have logged in Chapter 7, your spouse's credit will be promptly clouded with you. But Chapter 13 is to protect your spouse or cosign as it is a kind of repayment plan that you can reorganize your debts.

4. You may be able to keep her at home / car: Chapter 13 bankruptcy will help you keep your home or car, as you make payments under a court approved payment plan. But if you file Chapter 7, chances are that you can lose your home or car, if your home equity more than the applicable federal or state exemptions Your country of residence.

5.Know if your 401k plan and insurance policy is for sure: as retirement 401k, 403b etc. and pensions are protected under federal law. Than Such will not be affected by bankruptcy filings. However, IRAs and Keogh plans can not be fully protected, but they are exceptions (for example, creditors are not up to the first 1 million U.S. dollars of your money into an IRA) is defined under the bankruptcy laws.

Bankruptcy filings can help you to restructure the debt or payments depending on whether you are eligible for Chapter 7 or Chapter 13 However, so make sure that you are completely comfortable with disclosing your financial details of your creditors and the bankruptcy court.

About the Author:

Jessica Bennet is an experienced financial writer associated with Mortgage Fit Community. She has been guiding the Community through her writings on bankruptcy, bankruptcy filing , bankruptcy filing mortgage, loan modification and related financial topics. Her views and opinions shared in the forums have helped community members and guests get over problems in their mortgage.

Article Source: ArticlesBase.com5 things you shouldn’t forget to ask when you file bankruptcy

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Leave a comment

Your comment