Bankruptcy Exemptions Can Protect Your Retirement
Are you concerned about how filing for bankruptcy may impact your retirement assets? Have you contemplated dipping into your retirement assets to overcome your overwhelming debt burdens?
Before you cash in on your 401(k) plan or other retirement investment assets, it is important to consult an experienced bankruptcy attorney who can explain your rights under federal bankruptcy laws and state specific asset exemptions. Nora Lee Wright, Attorney at Law, can help you understand what protections are available to you and assist you in achieving debt relief solutions tailored to your needs.
Contact our Ann Arbor law office to schedule a free initial consultation with Attorney Wright to discuss your financial situation and how we can help you through financial turbulence.
Your Retirement Accounts May Be Protected in Bankruptcy
Federal bankruptcy laws provide asset exemptions that allow debtors to keep certain property out of the bankruptcy estate — meaning that it cannot be liquidated to pay off debts. In addition to certain personal property exemptions and homestead exemptions will I lose my house, protections are available to shield your retirement assets in a Chapter 7 bankruptcy proceeding.
Most 401(k) plans and pension plans carry specific provisions (an anti-alienation clause) that prevent creditors from recovering debts from retirement assets. With these provisions, military retirement accounts, 401(k) plans and other types of retirement plans are not even considered part of the bankruptcy estate. Therefore, these assets cannot be qualified as exempt or non-exempt property and cannot be liquidated by the Bankruptcy Court trustee.
However, IRAs, individual retirement savings or investments and certain 401(k) plans for self-employed persons may be subject to the bankruptcy estate. However, in most circumstances, bankruptcy attorney Nora Lee Wright can use state and federal bankruptcy asset exemption laws to your benefit and enable you to keep your retirement assets safe from bankruptcy creditors.
Know Your Rights. Contact a Michigan Bankruptcy Lawyer
If you are contemplating filing for bankruptcy, we welcome the opportunity to explain your rights and protections. It is important to understand that in most cases, we can shield all of your retirement assets from creditors in bankruptcy. Therefore, you should not attempt to liquidate your retirement accounts in an effort to avoid bankruptcy without first speaking with a skilled bankruptcy attorney.
Contact our Ann Arbor law office for a free consultation to discuss your situation. Call toll free 866-401-0594 or e-mail us to schedule your free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
