Can I keep my retirement plan?

Many individuals filing bankruptcy are concerned that that they will be unable to keep the funds in their retirement plans. In most cases, retirement savings are exempt. Individual retirement accounts (IRAs), 401(k) plans and pension plans through an employer are always protected. An IRA is exempt up to $1,000,000.00 and other retirement plans are exempt in their entirety. However, in certain cases, funds that individuals put away for their retirement may not be able to be protected. An experienced bankruptcy professional (link to home) can interpret the bankruptcy code to determine which funds are protected and which are not.

Borrowing from your 401(k)

It is important to consult an experienced bankruptcy attorney before borrowing any money from your 401(k) plan. If you previously borrowed money from your 401(k), repayments on 401(k) loans are not viewed as debts in bankruptcy and are not discharged in a Chapter 7.  Debtors who are enrolled in Chapter 13 may be able to use IRA or 401(k) funds for various personal expenses.

If you are considering filing bankruptcy please contact our office at 248.237.7979  to schedule a free initial consultation. We can help you keep your retirement savings and plan for a better financial future.