How does a Chapter 11 bankruptcy affect my retirement accounts?

Chapter 11 bankruptcy law in South Carolina is a form of bankruptcy protection that allows the individuals or business to restructure their financial affairs. When filing for Chapter 11 bankruptcy protection, your retirement accounts are protected from creditors. When you file for bankruptcy, there are certain exemptions available that protect your retirement accounts. Your retirement accounts, such as a 401(k), IRA, or other qualified accounts, are exempt from liquidation under Chapter 11 bankruptcy. This means that creditors cannot seize your retirement accounts to satisfy your debts. The bankruptcy court will also protect any money you contribute to the retirement accounts during the bankruptcy process. This means that as long as you are making contributions to the account during the bankruptcy process, that money is not available to the creditors and will remain in your account. It is important to remember that even though your retirement accounts are protected from liquidation, the creditors may still be able to garnish your wages to collect money they are owed. You should seek the advice of an experienced bankruptcy lawyer to understand the implications of filing for Chapter 11 and how it may affect your retirement accounts.

Related FAQs

How does a Chapter 11 bankruptcy affect my retirement accounts?

Related FAQs

Related Blog Posts