If you’re thinking about bankruptcy, don’t stop your 401 contributions

When it gets difficult to pay your bills, you’ll start looking for ways to bring home more cash. A common way people try to do this is to stop or lower their 401k contributions. Don’t change your contributions to a 401k or any other employer-sponsored retirement plan without talking to a qualified bankruptcy attorney first. While in most instances you can keep contributing money after filing bankruptcy, you might not be allowed to start a new contribution during your bankruptcy. For some Chapter 13 debtors, this means you cannot start a new 401k contribution for 3-5 years. Confusing? Don’t worry. We can help you to understand the effect of bankruptcy on your retirement accounts and other assets during a free consultation