Bankruptcy in Brief

a service of the Moran Law Group

Will I lose my retirement savings?

No, most forms of retirement savings are unaffected by a bankruptcy filing, either because they are not property of the estate or because they may be claimed exempt from the claims of creditors. The 2005 amendments to the Bankruptcy Code expanded the protection for retirement assets.

ERISA plans excluded from estate

The Supreme Court has held that an employee's interest in pension plans that are qualified under ERISA (the federal law on pensions) are not property of the estate: the debtor doesn't even have to exempt them in bankruptcy. If an assets is not property of the estate, the trustee can't cash it in for the benefit of creditors.

Exemptions protect retirement savings that are property of estate

Retirement savings that are property of the estate, such as some Keogh plans and IRAs, can be claimed as exempt up to a million dollars.
                    Tax liens on retirement plans

                    More on retirement assets in bankruptcy

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12/4/06