Bankruptcy May Play A Part In Retirement Planning, Attorney Suggests
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BANKRUPTCY MAY PLAY A PART IN RETIREMENT PLANNING, ATTORNEY SUGGESTS
Bankruptcy Attorney warns people getting ready for retirement not to raid savings to pay off debts
For Immediate Release – Wednesday, December 8, 2010
Contact: Mike Greiner – 586-693-2000 * mike@financiallawgroup.com
Warren, MI – A prominent Detroit-area Bankruptcy Attorney is suggesting that people getting ready for retirement should include Bankruptcy as part of their retirement planning.
“The greatest tragedy I see is when a client comes into my office who has wiped out a 401K account to pay interest on credit cards,” Attorney Michael Greiner said. “These folks end up in the same boat where they started, usually they have a big tax liability, and now their retirement’s in jeopardy.”
Greiner pointed to a few approaches someone should take into consideration when planning retirement:
- Retirement accounts such as 401Ks, 403bs and 457s are fully protected in Bankruptcy: “The only way creditors get access to your retirement funds is if you give it to them,” Greiner said. “People need to view their 401K as a retirement fund, and not as a piggy bank to pay credit cards.”
- Many courts allow homeowners to knock the second mortgage off their homes in Chapter 13 Bankruptcy: Where property values have declined to the point that the value is less than the amount owed on the first mortgage, second mortgages and home equity loans can often be wiped off someone’s home in a Chapter 13 Bankruptcy case. “Reducing someone’s mortgage debt can be an important step toward retirement,” Greiner said. “This approach creates an affordable path for many people to accomplish that goal in a reasonable amount of time.”
- Debt can be a major burden to people looking to retire: “At a time when people are getting ready to retire, they should be putting their money into savings, not paying interest on credit cards,” Greiner said. “For many people, eliminating credit card debt in Bankruptcy might allow them to retire where they might not have been able to with the debt.”
Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy (www.financiallawgroup.com). He has represented thousands of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney. He blogs at myeasy7.com/blog.
