retirement in bankruptcy

Can Bankruptcy Affect 401(K) and Retirement Accounts?

Bankruptcy has been designed in a way to help people recover from bad financial conditions. Consumers can file for bankruptcy under chapter 7 or chapter 13. In either case, they get to keep their retirement funds. The state, as well as the federal government, has exemption laws that prevent an individua’s property against creditors and bankruptcy trustee. The retirement accounts are part of the exemptions provided by the government. These include: 401(k)s 403(b)s Profit Sharing Plans Defined-Benefit Plans Money Purchase Plans Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs Keoghs In short, all funds in retirement accounts are [...]