Can retirement accounts and 401k's be taken in bankruptcy?
Attorney Jim Monroe confirms that retirement accounts cannot be taken in bankruptcy.
Attorney Tom Olsen: You’re going to file bankruptcy for them whether it’s a Chapter 7 or Chapter 13, what about their retirement accounts? Are they protected or not protected?
Attorney Jim Monroe: The 401Ks, the IRAs and the State Pensions are protected under bankruptcy law in United States Supreme Court decisions. There’s a number of kinds of property and when I say property, I don’t just mean real estate that is protected, because Florida is a retirement state. For example, insurance annuities are generally protected, so if somebody, instead of having of the certificate of deposit, they put some money with an insurance company for an annuity, the annuity is protected from the creditors.
Attorney Tom Olsen: Okay, very good. Thank you, Jim. We’re going to take a break. We’ll be back in just a few minutes