Is Your Pension Affected by Bankruptcy?
Workers who put in long years of service at a company may be given substantial pensions to improve their quality of life during retirement. Many times, these pensions are coupled with other retirement plans, giving a person a decent sum to draw from when they stop working. Due to the importance of this financial support, many debtors facing bankruptcy are concerned about these pensions, and, ultimately, their retirement.
If you’re considering bankruptcy as a way to work towards debt freedom, we may be able to help you keep some assets that are crucial for your future. To learn more about exemptions and excluded assets in bankruptcy, contact a Joliet bankruptcy lawyer of Law Offices of Stuart B. Handelman today by calling 815-722-2201.
Pensions and Bankruptcy
People’s pensions are generally excluded from the bankruptcy process. This means that an individual may not need to file for a specific exemption, but he or she still needs to indicate these excluded assets during the bankruptcy process. An attorney can help someone handle this part of filing for bankruptcy.
Pensions protected during bankruptcy include the following:
- IRAs in some situations, often linked to educational retirement accounts
- ERISA-qualified plans
- Tax deferred annuity plans
- Government retirement accounts
- Deferred compensation plans
A person should consult with a legal advisor about what steps to take if he or she is considering filing bankruptcy and has pensions to protect. There are some rules and limitations to these pension protections that a debtor may want to know more about.
Bankruptcy may be the solution you’re looking for to protect your assets when dealing with your debt problems. To discuss your first steps towards a brighter financial future, contact a Joliet bankruptcy lawyer of Law Offices of Stuart B. Handelman at 815-722-2201 today.