' Credit Card Debt Relief Consolidation - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Don’t Jump to a Credit Card Debt Relief Decision in Florida, II

A warning about credit card debt relief options was the focus of our prior post. It wasn’t a warning against finding a solution, but instead it warned about jumping into a decision before truly understand the benefits and consequences associated with that decision and other options. We used withdrawing from 401(k) as an example, the first post focusing on the current costs associated with this option.

In our prior post, we determined that an individual in the 25 percent tax bracket could have to withdraw approximately $15,000 from a 401(k) to pay off a $10,000 credit card debt. However, this is only a present-day snapshot. Looking down the road, that money may actually cost $60,000. How?

The money in a 401(k) continues to earn interest. For a person who would have left it there for another 14 years, the average 5 percent interest rate would have increased the future value to that $60,000 mentioned above. Again, for some there may be sufficient funds there to make this a viable option.

Borrowing from a 401(k) is another option that helps avoid the tax issue, but there are often serious restrictions. For example, the loan may become due should an employee choose to leave their job. Getting laid off could also cause the same result.

This is only one example, but it illustrates the need to research options first. What is right for one situation is not always the best choice under other circumstances. This is where a bankruptcy attorney can provide advice based on research and experience on the widest variety of possible solutions tailored to a case-by-case basis.

Source: Fox Business, “Withdrawing vs. Borrowing From 401(k) to Pay Credit Card Debt,” Gary Foreman, April 29, 2013

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Can You File Bankruptcy During a Divorce?

Divorce and bankruptcy are personally difficult and also complex legal processes that can have significant implications for your financial future....
Read More

Can You File Bankruptcy on Restitution?

Facing financial struggles can be overwhelming, especially when debts include complex legal obligations like restitution. What is restitution and how...
Read More

Can You File Bankruptcy After a Judgment?

Receiving a judgment against you in a lawsuit can be a distressing experience. This is especially true if you're already...
Read More

Can Back Taxes Be Included in Bankruptcy?

Dealing with back taxes can cause a lot of stress and financial burden for anyone facing financial hardship. If you're...
Read More

Can an Estate File for Bankruptcy?

Many people wonder whether or not an estate, such as the one left behind after someone passes away, can file...
Read More

How Long Should I Keep My Bankruptcy Discharge Papers?

If you've successfully navigated the bankruptcy process and received your discharge papers, congratulations are in order. It's a significant milestone...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions