Can creditors attach to my retirement plan foreclosures or bankruptcy?
My husband and I have just lost our jobs and we own 3 properties that are not worth what is owed on them. We have great credit scores but cannot get the banks to talk to us about alternatives to keeping the properties at a reduced payment or sellling on short sale. We have to ruin our credit first and then they might talk to us… We have have the properties on the market but cannot sell without going to the table with large amounts of cash.
If these properties foreclose or we go into bankruptcy.. Can the creditors attach or take our retirement savings to satisfy debt?
thanks for your help..
Posted June 20th, 2010 in Bankruptcy Q and A. Tagged: bankruptcy, banks, credit scores, creditors, foreclose, jobs, retirement savings, thanks for your help.
No, that is protected.
June 20th, 2010 at 4:36 amIF they sue you, and IF they win, then they could levy your bank accounts.
They cannot garnish retirement income, but I think they can access any money that is in a savings account.
You probably need to talk to a lawyer.
June 20th, 2010 at 4:36 am1) don’t buy more then you can afford
June 20th, 2010 at 4:36 am2) the right thing to do would to be use your retirement to satisfy your dept.
3) If all else fails try to get it all in 1 name so at least one of y’all has good credit
I was going to post a similar question. Our home is currently in my name as my now wife bought the home before we were married.
June 20th, 2010 at 4:36 amIf we have to walk from our home (neg am loan) and try to buy another using her credit, would we still have a chance at buying a home or would they deny her by association with me?