Protecting Retirement Plans

When you file bankruptcy, most retirement savings are exempt, meaning that the bankruptcy trustee cannot take those assets to pay your debts. However, not all savings that a person may intend for retirement are protected. Before you file bankruptcy, it's important to seek legal advice from a certified bankruptcy attorney to determine which assets are protected and which are not.

At Charles J. Schneider, P.C., our attorneys have been helping individuals in Michigan protect their retirement savings since 1977. We provide a free initial consultation to discuss your retirement assets. Our law office is conveniently located in Livonia, Michigan, and we serve clients throughout the Detroit metropolitan area.

What Retirement Savings Are Protected?

The intent of the Bankruptcy Code is to provide you with a fresh financial start, not to leave you destitute. Therefore, you are allowed to keep certain assets when you file bankruptcy, including retirement benefits. As a general rule, assets in qualified retirement plans such as employer-sponsored pension plans and 401(k) plans are entirely protected. Individual retirement accounts or IRAs up to $1 million are also protected.

However, certain assets may or may not be protected. Examples of assets that may not be protected include:

  • Assets held in a revocable trust
  • Assets in a nonqualified retirement plan
  • Assets in a savings account that you intend for your retirement, but which is not an IRA or 401(k)
  • Investments in real estate other than your primary residence

Learn more about protection of retirement assets, 401(k) plans and real estate in bankruptcy.

Bankruptcy Protection Lawyers Serving Westland And Metro Detroit

For more information about protecting retirement plans in bankruptcy, call 734-237-1523 or fill out the contact form on this website. We offer evening and weekend appointments.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.