Is a deferred retirement plan exempt in a Chapter 7?
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Is a deferred retirement plan exempt in a Chapter 7?
I have about $60,000 in the FL deferred retrirement plan. I stopped accumulating retirement benefits four years ago and will get a check for about $80,000 in about 10 months. Instead my pension goes into an account on which I draw interest and I keep working for five years and then I have to retire. It is a great deal. If I file a Chapter 7 now, will that be exempt or will it be part of the bankruptcy estate?
Asked on August 3, 2011 Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the bankruptcy laws of this country, one's retirement benefits be they through an IRA, 401 k or some other approved retirment plan are exempt from disposal by the bankruptcy trustee in a chapter 7 bankruptcy. Your will have to dislcose your pension/retirement in any bankruptcy filing as a matter of course.
From what you have written, it seems that you need to consult with a bankruptcy attorney about the process and how it could assist you in your current financial status.
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