February 22, 2024 By:
No. Creditors may not obtain access to any qualified plan to obtain repayment of a debt in bankruptcy. Qualified plans include any employer-sponsored retirement plans that meet the requirements of the Internal Revenue Code for deferment of income tax (until after retirement). Qualified plans include defined contribution plans and defined benefit plans. Examples of employer-sponsored retirement plans that will be exempt from bankruptcy include 401k plans, 403b plans, and most pension plans.
A personal retirement account will also be deemed a qualified plan if it qualifies for tax deferment. Because an IRA is a qualified plan, the funds in that account will not be available to creditors in a bankruptcy filing.
Investments or savings that are not in a tax-deferred qualified plan may or may not become part of your bankruptcy estate, based mostly on the provisions of state laws. Often, the analysis must be made on an asset-by-asset basis. An experienced Texas bankruptcy attorney can help you determine your rights.
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options an in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.