Christopher Todd Morrison, P.C.
Affordable Bankruptcy

January 2018 Archives

Borrowing from a 401(k)

Many Houston residents are struggling with high debt levels. In many cases, these folks may want to do the right thing and meet their obligations to creditors. For those who are employed and have retirement accounts, borrowing from a 401(k) may be a tempting debt management strategy.

What a trustee does in a a bankruptcy case

Texas consumers who are struggling to pay their bills may opt to file for bankruptcy. When a case is filed, a trustee will be appointed to oversee it. In Chapter 7, this person will inventory a debtor's assets and move to liquidate any nonexempt property. In some cases, a debtor has nothing to liquidate. In such a scenario, the trustee will notify the court that it is a no asset case.

Pros and cons of a 401(k) hardship withdrawal

Some people in Texas who are struggling with debt might be able to use a 401(k) hardship withdrawal. Only certain types of 401(k) plans allow this type of withdrawal, and it can be used only for specific types of expenses. 401(k) hardship withdrawals can be used for funeral or burial expenses, payments that prevent foreclosure or eviction, repairs for some types of home damage, a new primary residence or medical bills.

Americans get debt for the holidays

People in Texas might be in for some post-holiday buyer's remorse when they see their incoming credit card statements. Overall, Americans spent a lot during the 2017 holiday season, and many of their purchases were charged. A recent MagnifyMoney study claims that the average American consumer put themselves a little more than $1,000 in debt due to holiday spending. Furthermore, many of those people expect paying off that debt to be a slow process.