Bankruptcy Secrets
401K and IRA Exemption
The new bankruptcy law introduces so many new restrictions, but the new law does include a few breaks for working Americans.
One such break has to do with IRA and 401k retirement plans. Though the rules are rather complicated, generally speaking your retirement programs are exempted from liquidation up to one million dollars. Ask your bankruptcy lawyer for more detailed information.
Discuss placing funds into your IRA or 401k with your lawyer. You may be able to shield some money in this way though there may be time limits imposed which would make it profitable to place the funds into the retirement accounts one year or more before filing for bankruptcy protection.
