Employment Law Questions? Ask an Employment Lawyer.
Hello. I am going to assist you with your questions this evening.
The short answer is that Congress overhauled the bankruptcy laws in 2005. Under the new law, virtually all retirement account and pension plan funds are exempt from creditors, meaning you get to keep them if you file for Chapter 7 bankruptcy. In Chapter 13 bankruptcy, because your retirement accounts are exempt, they won't affect how much you must repay unsecured creditors.
In other words, you should be ok.
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Thank you. That explanation really did clear things up.
You have the option of trying to sue them for fraud/misrepresentation to try to get out of the obligation. Otherwise, unfortunately it seems that you would be bound by the agreement you signed for the next 5 years. You would basically need to prove that the purchase and sale agreement is invalid to be able to get out of it.
You can also try calling the Texas Department of Consumer Affairs to see what their approach to these types of companies is. You may be able to file a complaint with them and begin an investigation.