♪ Bymaster Bankruptcy makes it easy to file bankruptcy ♪ We have clients from all Indiana that come and ask us “Will my retirement accounts be protected when I file bankruptcy?” They would like to file and get relief from their debts but worried that their creditors or trustees will be able to take some of their 41K, IRA, or other retirements account. Well I have good news retirement accounts generally are exempt and protected when you file for bankruptcy. Retirement accounts are generally protected in exempted bankruptcy. But we usually need to look for is if those retirement accounts are tax exempt and tax deferred. If they are tax exempt and tax deferred retirement accounts It’s very likely they’ll be protected in the bankruptcy. Now that includes most retirement accounts as they are set up today. However, certain modes of retirement people chose may not be exempted bankruptcy, because they’re not tax exempt or tax deferred. One of these is just any sort of general savings accounts or financial plan that doesn’t have that special retirement tax exempt or tax deferred status such as savings account or any other financial plan although would be a good financial plan is not protected in the bankruptcy. Number two, another common source of retirement that could be not be protected in the bankruptcy is annuity. Annuities are the right the receive future income that can be purchased in a lump sum. Now private annuities, ones that you hold that can be sold that entitle you to future income, are not exempt from bankruptcy. But don’t worry, your company that you work for bought that annuity years ago for the purposes of your pension, you probably don’t even own the annuity, they do and they cannot take that to the bankruptcy. Now lastly, its very important to point out that if a large contribution before bankruptcy is make to an IRA or 41k that’s kind of out of the ordinary then that large contribution to that tax exempt or tax deferred retirement account could even be held to be not protected or non-exempt in the bankruptcy too, so you want to stay away from making large contribution to your 41K in anticipation for filing bankrutpcy. Now, questions whether your retirement accounts are exempt in bankrutpcy can be complicated in certain situations. So make sure to defer to an accountant, a financial planner, and of course your bankruptcy attorny when your making plans on seeing if your financial accounts will be exempted bankruptcy. And we can definitely help you with any sort of planning like that if you’d like to give our office a call. ♪ Bymaster Bankruptcy has everything! ♪