COVID-19 Update: We are open! However for your safety and ours during this time, we have suspended all in-office appointments. We will be consulting and handling all business via phone, email, and/or video conference. The courts have also suspended in-person hearings and will be handling everything telephonically. If you need us, whether as a new client or a current client with questions and concerns, please call or email us now. We are here to help you through this difficult time any way that we possibly can.

Will bankruptcy stop the division of retirement plans in a divorce?

No.  Spendthrift trusts, IRA accounts, 401K plans, and ERISA qualified retirement plans are not property of a bankruptcy estate.  If an asset is not property of the estate, the debtor does not have to claim it as exempt to protect it from the claims of creditors; it is by definition beyond the reach of bankruptcy creditors and the trustee. The bankruptcy filing and the automatic stay would have no impact on the division or settlement of these types of accounts in a divorce proceeding.

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