What Happens to Your Retirement Money in Bankruptcy?
A person thinking about their future may decide to contribute heavily to a retirement plan that can keep them financially secure well into their older years. If financial problems arise before they reach retirement, they may want to consider bankruptcy as a way to handle their debt. Additionally, certain bankruptcy exemptions may be able to help protect the retirement money they have worked so hard to save.
If you are struggling with overwhelming debt, bankruptcy may be the best way for you to protect your future and regain control over your finances. To learn more about the options that may be available to you, contact the Joliet bankruptcy lawyers at the Law Offices of Stuart B. Handelman, P.C., today by calling 815-722-2201.
Retirement Plan Exemptions
When a person files for bankruptcy, they may be allowed a variety of exemptions that can help them protect their assets. In particular, exemptions are available for those concerned about their retirement plans. Many of these plans are protected during the course of a bankruptcy.
Retirement plans that may be protected by a bankruptcy exemption include the following:
- IRAs, including Roth, SEP, and SIMPLE plans
- Money purchase accounts
- Profit-sharing accounts
- Defined-benefit accounts
There are some limits for the amount of money a person can protect in these accounts in some situations. A person may want to speak with an attorney to learn more about how these exemptions work in detail.
If you’re looking for a way out of debt, bankruptcy may be your best bet. For more information about your options and how bankruptcy could work for you, contact the Joliet bankruptcy attorneys at the Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.