Bankruptcy Attorney Discusses Bankruptcy and IRAs

Our Walworth Bankruptcy Attorney has heard time and again from clients that they are afraid to file bankruptcy for fear of losing their retirement funds, such as their IRA. Firstly, we would like you to know that in most cases, your IRA and other retirement funds will be protected. The current Wisconsin bankruptcy code allows you to protect your IRA. Other retirement plans garner the same protection.

Can a Walworth Bankruptcy Attorney Interpret Bankruptcy Exemptions for Me?

Of course we can! The Wisconsin Bankruptcy Code states the following in regards to IRAs and other retirement savings:

“Wis. Stat. Ann. 815.18 (1)(j)

(j) Retirement benefits.
1. Assets held or amounts payable under any retirement, pension, disability, death benefit, stock bonus, profit sharing plan, annuity, individual retirement account, individual retirement annuity, Keogh, 401-K or similar plan or contract providing benefits by reason of age, illness, disability, death or length of service and payments made to the debtor therefrom.
2. The plan or contract must meet one of the following requirements:
a. The plan or contract complies with the provisions of the internal revenue code.
b. The employer created the plan or contract for the exclusive benefit of the employer, if self-employed, or of some or all of the employees, or their dependents or beneficiaries and that plan or contract requires the employer or employees or both to make contributions for the purpose of distributing to the employer, if self-employed, the employees, or their dependents or beneficiaries, the earnings or the principal or both of a trust, annuity, insurance or other benefit created under the plan or contract and makes it impossible, at any time prior to the satisfaction of all liabilities with respect to beneficiaries under a trust created by the plan or contract, for any part of the principal or income of the trust to be used for or diverted to purposes other than for the exclusive benefit of those beneficiaries.”

The Wisconsin Bankruptcy Code recognizes that your IRA and other retirement funds have a designated purpose. Therefore, they are exempt from being seized in a Walworth bankruptcy. As stated above, although rare, there are some exemptions. If you have concerns about your IRA or other retirement savings when filing bankruptcy, contact our Walworth Bankruptcy Attorney to discuss your situation.

Experienced Walworth Bankruptcy Attorney

Our Walworth Bankruptcy Attorney is experienced in Wisconsin Bankruptcy Code. Our bankruptcy experience in situations like yours is valuable. If you are considering a Walworth bankruptcy and you have money invested in retirement funds, you can almost always rest assured that you will not lose those savings. However, make sure you hire an experienced Walworth Bankruptcy Attorney who knows the law and how to handle your particular situation. Please contact us regarding your Walworth Bankruptcy at 262-725-0175 or send us an email via our bankruptcy contact page.

Walworth Bankruptcy Attorney Contact

*The content and material on this web page is for informational purposes only and does not constitute legal advice.

Photo by Flickr Creative Commons Simon Cunningham

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