Will My Retirement Accounts Be Protected in Bankruptcy?

Hi, this is Ike Shulman of Shulman Law Office. Will you lose money in your retirement account if you file for bankruptcy? For the most part, your 401(k), IRAs and other qualified retirement accounts are protected in bankruptcy. If you file for bankruptcy under Chapter 7, this means the trustee can’t touch your retirement funds. If you file for bankruptcy under Chapter 13, this means your retirement funds don’t count when determining how much you have to pay into your Chapter 13 repayment plan. However, for some accounts, the protected amount may be capped. And in a few situations, your retirement accounts may not be safe from the claims of the bankruptcy trustee and your creditors.

What type of protection the law provides for your retirement account depends on whether it is an ERISA  or Employment Retirement Income Security Act-qualified plan or non-ERISA plan. If you have any questions about bankruptcy, contact me at 408-297-3333 or by email at ike@ikeshulmanlaw.com.