If I’m in a Chapter 13 bankruptcy, how will a lump sum retirement payment affect me?

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If I’m in a Chapter 13 bankruptcy, how will a lump sum retirement payment affect me?

I have applied to retire from the Teacher Retirement System with an lump sum option and a monthly check. Will my trustee ask more money from me?

Asked on May 29, 2012 under Bankruptcy Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under federal bankruptcy laws, one's retirement benefits are generally exempt from creditors of the bankruptcy estate. This would include the lump sum retirement payment as well as your monthly checks for your retirement.

To confirm this, I suggest that you consult with a bankruptcy attorney with respect to this retirement money.


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