What Happens to Bank Accounts, Pensions, and Retirement Funds in Bankruptcy?

Will I Lose My Checking or Savings Account if I File Bankruptcy?

If you file for Chapter 7 or Chapter 13 bankruptcy, will you be able to keep your savings, checking, or other bank accounts? The answer depends on what you mean by "keeping." While most banks won't close an account in good standing, you'll have to cover the balance with a bankruptcy exemption. Otherwise, you'll likely lose it. Other bankruptcy checking and savings account issues include losing funds to setoff and difficulties opening new accounts after a bankruptcy filing.

Can You Keep Your Retirement Accounts in Bankruptcy?

Under most circumstances, you can keep your retirement accounts, such as 401ks and IRAs, if you file for Chapter 7 bankruptcy. However, for some accounts, the protected amount may be capped.

401k Retirement Accounts and Bankruptcy

If you file for Chapter 7 or Chapter 13 bankruptcy, what happens to your 401(k) account? For the most part, your 401(k) and other qualified retirement accounts (such as 403(b)s, profit-sharing and money purchase plans, IRAs, and defined-benefit plans) are safe

Is Social Security Safe in Chapter 7 Bankruptcy?

Generally, Social Security benefits that have been or will be paid to the debtor are safe in a Chapter 7 bankruptcy. However, if you have Social Security benefits in a bank account prior to filing for bankruptcy, or have received a lump sum payment, you may run into trouble if you have commingled (mixed) these funds with non-Social Security money.

Is Your Pension Exempt in Bankruptcy?

If you have a pension and you file for Chapter 7 bankruptcy, you can probably exempt at least some of your pension and protect it from the bankruptcy trustee.

The New Bankruptcy: Will It Work for You?

Is bankruptcy the right solution for your overwhelming debts? Pick the best strategies for your situation with the information and practical suggestions in this book by best-selling author Stephen Elias.

How to File for Chapter 7 Bankruptcy

The reliable, up-to-date information in this best-selling book will help you successfully complete your bankruptcy claim without breaking the bank.

Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time

This comprehensive guide explains the Chapter 13 process, from start to finish.