Personal Bankruptcy Bankruptcy or IRA

[kccmw14617]

I have close to 100k in cc debt, about 9k owed on original mortgage, 29k owed on home equity line of credit, 58K in IRA & at least 10 calls a day from cc collection law firms on my cell phone. Is bankruptcy the best answer or do I empty my IRA (I know all the penalties and being taxed at tax time for the full 58k), but i want the harassment to stop and pay the cc companies off and get on with my life.

 

[sfitz]

SCOTUS ruled recently that IRAs are exempt assets in bankruptcy. I would say that chapter 13 is the best option. You can then keep your IRA and work out a plan to pay off some portion of your debt over a five year period.