Can You Save Your Pension during Bankruptcy?
Exceptions are available for many important assets during the bankruptcy process. In particular, a person’s pension is considered excluded in many instances. This can allow a person to protect these crucial assets from being lost during bankruptcy.
If you’re concerned about protecting your property during the bankruptcy process, you may want to work with a legal advisor to help you find these important protections. For more information about how our services may be able to assist you with exemptions and other considerations, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC., today at (205) 324-4000.
A person filing for bankruptcy can save their pension as long as they properly indicate the pension early in the process. These pensions aren’t exempted from bankruptcy, but are actually considered entirely excluded from the process. However, a bankruptcy trustee needs to have the pension brought to their attention before the account can be excluded.
The pensions protected by bankruptcy exclusion can include:
- ERISA accounts
- Tax deferred annuity plans
- Government retirement accounts
- IRAs, namely for educator retirement funds
- Deferred compensation plans
A person needs to make sure that they bring this exclusion to the court’s attention through the proper paperwork.
If you’re considering the effects of bankruptcy on your retirement, we may be able to help you set up the proper exclusions and exemptions for your money. To learn more about your options in going forward with bankruptcy, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC., today by calling (205) 324-4000.