by Hermin Dowe on June 15, 2012

Bankruptcy is a tool like any other that you may use throughout your daily life.  If used correctly it can provide great benefits for you.

There are people out there who will go to any length to avoid bankruptcy, often to their detriment.   So you have some retirement money from which you can borrow, and you decide this is a great way to make your creditors happy.  Stop!  This is the time to be selfish.  It’s called retirement savings for a reason.  If you were meant to use this money to pay off credit card debt it would not be so difficult to get your hands on and it would certainly be named something else.

There was a time when we were all lured into taking out a line of credit against our homes so we can pay off those credit cards.  And we readily did this because we believed there was only one way home values could go… UP.   Over the last few years those credit lines have come back to haunt us as our home values have dropped.  We have built up more credit card debt.  And our real incomes have gone down. This is one of our main reason for tapping into our retirement.  But why do this?   We have to pay penalties and taxes associated with raiding our 401Ks, 403Bs, etc. to pay off credit cards.  But you can easily get rid of the debt by filing a bankruptcy with no penalties and no interest and your retirement savings remain intact.

If you have steady income you may also be able to get rid of that line of credit in a chapter 13 bankruptcy. Sure, you’ll have to pay a percentage of your debt back to your creditors.  But compared to raiding your retirement this is a far better option.  So before you listen to your friend a or even the creditor who will tell you to borrow the money to pay him, call a bankruptcy attorney and weigh your options. The light at the end of the tunnel may be brighter than you think.  Making the credit card companies happy at the expense of your family and your retirement is definitely not a wise decision.

If you are someone you know are interested in finding answers to your credit problems then give us  a call at 510 233-7700. The attorney and staff of the the Dowe Law Firm will  get you on the path to financial stability.

For more information you can also visit us at

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