Can Retirement Accounts Be Seized During Bankruptcy?

Can Retirement Accounts Be Seized During Bankruptcy?
Most retirement accounts are protected by federal bankruptcy rules. Shutterstock
Anne Johnson
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Some people find themselves under financial stress. When this happens, the possibility of filing for bankruptcy may be imminent. They’re in danger of losing all their assets—everything they’ve worked for.

But what about their retirement accounts? Are they in danger of losing those assets as well? Many people spend a lifetime building these accounts. If you’re considering filing for Chapter 7 or Chapter 13, you’ll need to know the answers to these questions.

Employer-Sponsored Plans Protected

Although some limitations apply to specified accounts, most retirement accounts are protected by federal bankruptcy rules.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for 10 years.