Will I Lose My Retirement If I File For Bankruptcy?
By Kevin Gipson, New Orleans Bankruptcy Attorney on Sep 19, 2009 in Benefits of Bankruptcy, Exemptions In Bankruptcy, Featured
One of the most common fears that people considering bankruptcy have is whether or not they will lose their retirement if they file for bankruptcy.
Like all legal questions, the answer to the question of whether or not a debtor will lose their retirement benefits if they file for bankruptcy is that they will probably not lose their retirement benefits.
401(k) plans, 401(b) plans, IRAs, and most other retirement plans are exempt from seizure by creditors either under federal law, state law or both.
For a retirement plan to be exempt it must be a qualified plan, and as a practical matter most plan are qualified plans.
One exception to a retirement plan is if you have made large additional payments to your retirement plan before filing, those payments may not be exempt.
Speak with an experienced bankruptcy attorney such at the attorneys on the Bankruptcy Law Network to see if there are any issues regarding your retirement plan.
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