Recovery Law Group

  If you are filing for bankruptcy, you might have heard about 401(K), which is generally considered a safe bankruptcy. They are considered exempt under the Employee Retirement Income Security Act (ERISA) that requires your employer to keep your retirement funds in a trust, which remains safe from creditors. The funds in 401(K) are not liquid assets, and as such, can’t be used to pay back your debts during bankruptcy. In most cases, when you want to keep my 401(K) in bankruptcy, all your disposable income will go toward paying your creditors. Some states also allow you to make retirement contributions, but you will need to speak about it with the lawyer who is dealing with your case to keep my 401(K) in bankruptcy .         However, IRA may seize your 401(K) or other retirement accounts if you have unpaid federal income tax and associated fees. While the federal government has the ability to seize money from your 401(K) the state and local authorities g...