Wednesday, August 24, 2016
Is My Retirement Safe In Bankruptcy?
A large part of the population belongs to a generation referred to as the “baby boomers”. This group of Americans is those people born during World War II, and they are now reaching retirement age. Unfortunately many of the baby boomers are also facing financial hardship, and are looking for ways to make the most out of what money they’ve been able to put aside for retirement. In some instances the answer is bankruptcy, but this decision comes with a lot of questions. One of the most important questions for this age group, as well as people of all ages, is how retirement is treated in bankruptcy.
Because a retirement fund is considered an asset, it is only natural to wonder if it will be taken away from you to pay your debt when you file bankruptcy. Fortunately, retirement is not considered part of your bankruptcy estate, and thus it cannot be taken from you if you file a case. Other types of financial benefits that are untouchable during bankruptcy include:
• Social security benefits.
• IRA’s and pensions
• Depending on the specific facts of your case, most checking and savings accounts as well as CD’s are safe in bankruptcy.
This is good news for those trying to enjoy the fruits of their labor, but needing a little relief from the bankruptcy court. Knowing that your retirement is safe is a huge relief, and when you add to that fact the fact you can eliminate some of your debt through bankruptcy it becomes clear that for many people of retirement age, bankruptcy can help ensure you don’t run out of money as you age. The same is true for people still in the workforce, but how have fallen on hard times. Many retirement accounts transfer from job to job, and if you have to find new employment due to the economic downturn it is nice to know those funds are safe if bankruptcy is needed. Regardless of your age or amount you have managed to save for retirement, keeping those funds safe is of paramount importance. For more information about how bankruptcy impacts your assets, call our office.
For more information about how bankruptcy impacts your retirement accounts, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.