Will My Retirement Savings Be Affected by Bankruptcy?
When filing for bankruptcy you may be already worried about the state of your finances and how you will be able to move forward. If you have a retirement fund, which many Americans do, your anxiety may be even greater as you wonder whether you will have to use it to pay off your debts. However, bankruptcy does not have to drastically affect your future and retirement savings, and in fact, most retirement plans are protected when you file for bankruptcy.
Though the prospect of filing for bankruptcy may be intimidating, it does not have to be. Bankruptcy offers a way to regain control of a financial situation which is marred by an imbalance between income and debts. For help with this process, contact the West Palm Beach bankruptcy attorneys Eric N. Klein & Associates, P.A., at 561-353-2800.
Protected Savings
Due to recent legal developments, it is likely that your retirement funds will be unaffected when filing for bankruptcy. Your retirement plan is likely to be protected in the following circumstances:
- Plans protected by ERISA and Federal pension laws
- Keogh plans and IRAs that are less than $1 million may be exempted and, therefore, protected
- Plans that are exempt from income taxes
- Most IRAs, Roth IRAs and company accounts
As many retirement plans are not property of the estate or can be exempted, they are not subject to bankruptcy filings.
Contact Us
Bankruptcy can be an overwhelming process, full of numerous potential pitfalls. Having a knowledgeable bankruptcy lawyer guiding you throughout the process can lessen your worry and help you to successfully complete your case. Contact the West Palm Beach bankruptcy attorneys at Eric N. Klein & Associates, P.A., by calling 561-353-2800 today.
