First, it is possible that some or all of the debt you are attempting to repay could be discharged via bankruptcy. Second, your retirement accounts are very likely protected from your creditors in bankruptcy. Moreover, if you have decided to file for bankruptcy you will want to stop making payments to your unsecured creditors for 90 days before you file your bankruptcy case. The trustee who oversees your case will look at recent payments to creditors and if there are significant amounts paid in the three months leading up to your bankruptcy filing then the trustee may retrieve those funds from your unsecured creditors. When you have decided to file for bankruptcy, it is best to then leave these payments to unsecured creditors out of your budget so that you may pay for your essential expenses, such as housing, food, transportation, utilities, as well as any costs to file your bankruptcy case.
Are you struggling with debt that you cannot afford to repay? To see how we can help you resolve your debts while protecting your savings and retirement from your creditors, please feel free to reach out to your Yuba City bankruptcy attorney at (530) 797-4402.