Personal Bankruptcy IRA account

[mike_vanhoose]

i was downsized and ran out my unemployment. last september i boke an anlke and gained considerable medical bills and was stuck with a car in my name that by exwife's daughter was making the payments on the quit paying. needless to say i'm hurting financially.i have been living off my IRA. is what's left of my IRA attachable in a bankruptsy?

 

[freebird]

Originally posted by mike vanhoose
i was downsized and ran out my unemployment. last september i boke an anlke and gained considerable medical bills and was stuck with a car in my name that by exwife's daughter was making the payments on the quit paying. needless to say i'm hurting financially.i have been living off my IRA. is what's left of my IRA attachable in a bankruptsy?

Bankruptcy protection, in addition to federal does vary from state to state. It seems that IRAs are generally exempt although there are exceptions. Don't rely on this rule as you need to have someone look at the specifics and tell you for sure and especially with regard to whether to declare bankruptcy, a very serious legal claim.

 

[The_Governor]

I have heard that in my state the post-tax portion of an IRA is vulnerable to creditors. Pre-tax money in an IRA is not. I don't recall if the investment gains are vulnerable or not.

 

[cocojambo]

I believe IRAs are exempt from bankruptcy proceedings, as they include both employee & employer matched contributions.

 

[diy4law]

IRAs are exempt from a bankruptcy in most cases. In fact, it's a good place to keep money to protect it. If you're living off your IRA be proactive in filing and get rid of your unsecured debts. Many times people try to keep throwing good money on top of the bad and not accept the inevitable. Before deciding to file always get professional advice to make sure it's the best thing to do for your situation.