How will my IRA be affected by bankruptcy? 27 Answers as of June 24, 2011

I have been paying into my IRA for 20 years, can creditors take money out before my retirement and how will it be taxed if it is?

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Jackson White, PC
Jackson White, PC | Spencer Hale
If it is ERISA qualified, your IRA will be okay in bankruptcy.
Answer Applies to: Arizona
Replied: 6/24/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Money in your IRA is protected in a bankruptcy up to around $1,000,000.
Answer Applies to: California
Replied: 6/24/2011
Shmucher Law, PL
Shmucher Law, PL | Ofer Shmucher
It depends on the state that you are in, and the available EXEMPTIONS that are available for you. For example, under Florida law a debtor who files for bankruptcy can fully (100%) exempt his or her IRA. Furthermore the bankruptcy trustee will look at your contribution history in detail. For example did you routinely put in $300 a month for 20 years or did you 3 months before bankruptcy put in $40,000.
Answer Applies to: Florida
Replied: 6/23/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
Regular creditors such as banks, persons you owe money and finance companies cannot take IRA money. Your IRA account will not be affected by bankruptcy although you need to disclose it in the bankruptcy petition and exempt the account funds.
Answer Applies to: California
Replied: 6/23/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
The IRA is protected for over a million dollars through federal bankruptcy exemptions.
Answer Applies to: Michigan
Replied: 6/23/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    All ERISA qualified pension plans including your IRA are 100% exempt from creditors in your bankruptcy as long as the plans are not over funded. Once any money is withdrawn from the IRA it is subject to creditors and is not exempt in a BK case.
    Answer Applies to: Georgia
    Replied: 6/23/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Those are exempt, meaning the creditors can't touch them.
    Answer Applies to: California
    Replied: 6/23/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Under applicable exemptions, IRAs are protected up to and including just over a million dollars.
    Answer Applies to: Indiana
    Replied: 6/22/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Retirement accounts are generally exempted when you file bankruptcy. If it truly is an IRA and you didn't just put the money in, your creditors would not be able to take the funds.
    Answer Applies to: Michigan
    Replied: 6/22/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Creditors cannot get to your IRA except maybe the money that went in very recently.
    Answer Applies to: Virginia
    Replied: 6/22/2011
    Cartwright Law Firm
    Cartwright Law Firm | Andrea Cartwight
    ERISA qualified IRA/401k's are protected in bankruptcy. Creditors can not seize your retirement account prior to you receiving distributions from your IRA account. However, once you start receiving distributions, then the creditors may garnish and/or levied against your bank accounts and any other assets you may owned. This can only be done if your creditors have receive a judgment against you. If you should have any further questions or concerns regardng bankruptcy or whether your assets are protected in bankruptcy, please feel free to contact me for a Free consultation. Our firms offers low fees starting at $500.00 plus filing fee as well as E-Z Payment Plans. I look forward to hearing from you.
    Answer Applies to: Michigan
    Replied: 6/22/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Generally an IRA is exempt in bankruptcy. You should consult with an attorney to properly advise you so you do not lose any portion of your IRA.
    Answer Applies to: California
    Replied: 6/22/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Can protect up to 1M in IRA.
    Answer Applies to: California
    Replied: 6/22/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    In Bankruptcy, IRA's and retirement accounts will be 100% protected.
    Answer Applies to: Washington
    Replied: 6/22/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It sounds like you made the dangerous and perhaps financially catastrophic mistake of filing a bankruptcy without a lawyer, and compounded that by not even doing the most basic needed research. Most (not all) IRAs, if properly scheduled and exempted, can be retained. The failure to do this right could result in loss of your IRA. Get a lawyer immediately to look over everything and fix anything that is wrong.
    Answer Applies to: Georgia
    Replied: 6/22/2011
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