|
Q.If I file for bankruptcy will I lose my Retirement Account or Social Security?
A.Generally Not. Retirement accounts that are ERISA-qualified are not considered property in a bankruptcy and will not be seized by the bankruptcy trustee. Likewise, your Social Security Checks are protected from assignment and garnishment for debts listed in a bankruptcy petition if you deposit your social security benefit check into a bank account where the "only" deposits into that account are direct deposits from the Social Security Administration such that the benefits are “identifiable” and in turn protected. However, if you deposit your social security checks into a general bank account that also has money from other sources, then that bank account may become part of the bankruptcy estate and seized by the bankruptcy trustee.
|
|
