Ohio Exemptions: Bankruptcy May Save Your Retirement Fund
There are important Ohio exemptions that may protect your retirement fund in bankruptcy. It is unfortunate that many people make the mistake of waiting too long to consult an attorney when they find themselves unable to pay their bills. Instead of seeking legal advice, some people make a valiant effort to fend off creditors and pay down balances by tapping into their 401(k) or similar retirement fund. However, this approach usually involves significant early withdrawal fees and penalties and, even worse, it is rarely successful. This is due to the steep late payment penalties and compounding high interest rates on credit card debt which quickly cause the balances to drastically increase if you cannot pay them off lump sum. Sadly, dipping into their retirement funds often leaves these individuals in a much worse financial situation than if they had consulted an attorney first, used available bankruptcy exemptions to protect their retirement funds from creditors and discharged or repaid their debts through a well-planned bankruptcy.
To decide if bankruptcy is right for you, consult with an experienced bankruptcy attorney early in your decision process and as soon as you realize that you will not realistically be able to pay your bills or mortgage as they come due. Contact the law firm of J.M. Smith Co., LPA to speak with an attorney about your specific situation.
