ARLINGTON, TX, October 07, 2026 /24-7PressRelease/ — Regional Acceptance Corporation, a Truist auto-finance affiliate, plans to close its Arlington office and lay off about 205 full-time employees in two rounds starting around Nov. 30 and ending by Feb. 28, 2027, according to a WARN notice reported by Chron.
Leinart Law Firm advises affected workers with credit card debt to review their options before withdrawing retirement savings to pay creditors. Their bankruptcy lawyer in Arlington, TX can explain how Texas exemptions apply to 401(k) and IRA balances.
Retirement Accounts in a Texas Bankruptcy
Texas and federal law treat retirement savings differently from most other assets in a Chapter 7 bankruptcy case.
• Section 42.0021 of the Texas Property Code exempts employer retirement plans and individual retirement accounts from seizure for debts, whether vested or not.
• Federal bankruptcy law separately exempts funds in tax-exempt retirement accounts, so a 401(k) balance generally stays with the filer.
• Early withdrawals are generally taxed as income, and a 10 percent additional tax may apply to distributions taken before age 59½.
• A withdrawal used to pay credit cards or medical bills converts protected savings into payments on debts that a bankruptcy discharge might have eliminated.
Options Before Any Withdrawal
Leaving funds in the employer plan or rolling them into an individual retirement account keeps the money protected as a worker weighs other options. Chapter 7 may discharge most unsecured balances, and a Chapter 13 repayment plan can give a household time to catch up on a vehicle loan or mortgage.
“Many people treat a 401(k) as the first source of money for debts after a job loss, yet it is often the account creditors are least able to reach,” said Marcus Leinart, founder of Leinart Law Firm. “We review retirement balances, severance, and debts together before any money leaves the account, because a withdrawal can carry tax costs and forfeit protections a bankruptcy filing would preserve.”
About Leinart Law Firm:
Leinart Law Firm represents individuals and families across Texas in Chapter 7 and Chapter 13 bankruptcy cases and in matters involving foreclosure, repossession, wage garnishment, and credit card debt. Marcus Leinart, who founded the firm in 2005, earned his law degree from Texas Tech University School of Law and has held a Texas law license since 1995. A member of the National Association of Consumer Bankruptcy Attorneys, he has filed thousands of bankruptcy cases during his career. The firm has offices in Dallas and Fort Worth, and consultations can be scheduled online.
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