Blogs

Some People file Bankruptcy After They Drained their TSP
Some people file bankruptcy after they drained their TSP. Those people, people I meet as a bankruptcy lawyer, should have talked to me sooner and left their money safely in their TSP.
One of the many wonderful advantages of the TSP is this: your creditors can’t get to it. (Well, an angry ex-spouse can get to it in divorce. And so can the IRS).  But, if you owe money on a credit card or personal loan. even if they take you to court with a Virginia warrant in debt, and get a judgment and a garnishment, they can’t touch the TSP.
Suppose you’ve been RIF’d, or DOGEd, you need a place to live, you need to eat, you probably need a car. But how important is it to pay those credit cards?
If you can, you’d like to protect your credit score. But compared to having enough to buy groceries….
Borrowing from the TSP is drastic action, it’s a last resort. Some people also say that bankruptcy is a last resort. So if you arrived at that last resort, think about what’s better for you.
“Just business.”
Is Bankruptcy Really a Last Resort?
For some people, the decision to file bankruptcy is “just business.” 
In fact, one famous person bragged, “I’ve used it three, maybe four times; came out great.” 
Remember, the purpose of bankruptcy is to help you. The Supreme Court said, way back in 1934, bankruptcy relief is in the “public interest.” The country is better off if you can take care of yourself and your family. The Bank of America and Amex can take care of themselves.
The post Is It Smart to Borrow from my TSP to Pay my Credit Cards? appeared first on Robert Weed Virginia Bankruptcy Attorney.