Most of your retirement accounts are fully protected in a bankruptcy case. Any retirement account that is “ERISA qualified” is completely excluded from the bankruptcy estate, meaning that there is no risk that the Trustee could take the asset to pay your creditors. This includes most retirement accounts such as 401(k)s, 403(b)s and IRAs. Other types of retirement accounts can be exempted or protected up to $1,283,025 per person. As such, it is almost never a good idea to use retirement funds to try to pay off your debts, risking penalties and fines when you could otherwise protect those funds for when you need them For more detail please see Can bankruptcy take your 401k or IRA?
Articles in this section
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- Should I file for bankruptcy before I get married?
- I am expecting an inheritance. Should I still file for bankruptcy?
- I am planning to get married soon after I file. Will my bankruptcy affect my spouse?
- How does bankruptcy work if I'm retired?
- How do I protect my retirement assets?
- Will your system save my information if I want to come back in a few months?
- What are Upsolve’s income thresholds?
- I cannot file now file. What are my rights when it comes to dealing with collections agencies?
- What is Upsolve? How does the process work?