Can I keep my retirement accounts after filing for Chapter 7 Bankruptcy?

Yes, you can keep your retirement accounts when filing for Chapter 7 Bankruptcy in California. Generally speaking, many types of retirement accounts such as pensions, 401(k)s, Individual Retirement Accounts (IRAs), SEP IRAs, and Roth IRAs are exempt from liquidation and are not subject to the claims of creditors. This exemption applies to all 50 states, including California. The California Bankruptcy Code allows debtors to use federal or state exemptions which include the retirement accounts. To be eligible for the exemption, California requires that the account must have been funded before the debtor filed for bankruptcy. Other requirements are that the funds are held for retirement purposes and are not co-mingled with non-exempt assets. It is important to note that federal and state laws governing pension and retirement plans are complex and are subject to change. Before filing for Chapter 7, it is advisable to consult with a bankruptcy attorney in order to understand the scope of the protections, and any exceptions that may apply. Overall, if you are filing for Chapter 7 Bankruptcy in California, you are likely to be able to keep your retirement accounts, providing they are sufficiently funded and qualified under the applicable laws.

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