{"id":1432,"date":"2023-12-15T12:18:28","date_gmt":"2023-12-15T12:18:28","guid":{"rendered":"https:\/\/scottharrislaw.com\/?p=1432"},"modified":"2024-01-12T12:25:37","modified_gmt":"2024-01-12T12:25:37","slug":"retirement-savings-bankruptcy","status":"publish","type":"post","link":"https:\/\/scottharrislaw.com\/retirement-savings-bankruptcy\/","title":{"rendered":"Bankruptcy and Retirement Savings in Oklahoma City, Oklahoma"},"content":{"rendered":"
You do not lose everything when it comes to bankruptcy and retirement savings. In other words, you can utilize bankruptcy exemptions to protect your necessary properties. However, this exemption is limited. There are many legal aspects that you need to consider regarding retirement savings.\u00a0<\/span><\/p>\n Bankruptcy can have significant implications for retirement savings due to specific exemptions under state law. Oklahoma allows individuals to exempt certain retirement accounts from the bankruptcy estate, safeguarding them from creditors during bankruptcy proceedings. As such, Oklahoma City residents considering bankruptcy may find that their retirement savings are protected to a certain extent, ensuring they have some financial security for the future despite facing financial challenges.<\/span><\/p>\n Chapter 7 bankruptcy, or <\/span>liquidation bankruptcy<\/b>, allows you to wipe out most of your unsecured debts, such as credit cards, medical bills, and personal loans.\u00a0<\/span><\/p>\n Meanwhile, Chapter 13 bankruptcy (or <\/span>reorganization bankruptcy<\/b>) allows you to keep your assets and pay back some or all of your debts over a period of three to five years. You propose a repayment plan that proves how you will use your future income to pay your creditors.\u00a0<\/span><\/p>\n Planning for a secure retirement is a journey filled with twists and turns, and unforeseen challenges can sometimes jeopardize your hard-earned savings. One such risk involves the vulnerability of retirement distributions or withdrawals. Understanding the potential threats and implementing protective measures is crucial for ensuring a stable financial future.<\/span><\/p>\n Despite exempting funds in your retirement accounts from creditors, <\/span>income derived from retirement benefits is not exempt<\/b>. The role of retirement income is outlined as follows:<\/span><\/p>\n Understanding the implications for your retirement funds in bankruptcy is crucial. Many individuals in the stage of withdrawing retirement funds are often judgment-proof and may not need to file for bankruptcy.<\/span><\/p>\n Luckily, <\/span>most retirement accounts and pension funds that meet Employee Retirement Income Security Act (ERISA) qualifications are exempt from bankruptcy<\/b>. However, this safeguard has its constraints. As long as the funds stay within the designated account, they are shielded from creditors. Once withdrawn, the funds are subject to different rules, increasing the risk of loss. Consider safeguarding your funds through a cash or wildcard exemption to preserve them.<\/span><\/p>\n Apart from a few specific cases, <\/span>the exemption limits for retirement accounts in bankruptcy are without bounds<\/b>, ensuring the complete protection of the entire account balance. This exemption encompasses pension plans that adhere to ERISA qualifications, including:<\/span><\/p>\n Consider that a standard savings account, investment portfolio, or stock option scheme lacks protection unless it qualifies under ERISA\u2014a criterion most accounts fail to meet. Unshielded funds will be forfeited in both Chapter 7 and Chapter 13 bankruptcy proceedings, as they are utilized to satisfy creditor claims.<\/span><\/p>\n The protection against creditors for IRAs and Roth IRAs is capped at <\/span>$1,512,350 per individual<\/b>, representing the amount untouchable by the bankruptcy court. If your total retirement account balances surpass this threshold, the surplus can be seized by the bankruptcy court to settle your debts. This exemption applies to the aggregate of all your retirement plans, and you cannot apply the $1,512,350 exemption separately for each plan.<\/span><\/p>\n Understanding the link between bankruptcy and retirement savings is crucial before filing for bankruptcy. Your retirement savings serve several purposes, one of which is to secure your future and that of your loved ones.<\/span><\/p>\n Scott Harris Law, PLLC is the one you can trust to protect your retirement benefits in Oklahoma. With our <\/span>proactive and highly personalized legal service<\/span><\/a>, you won’t regret choosing us! We can also help if you are <\/span>trapped in serious credit card debt<\/span><\/a>, <\/span>prevent foreclosure<\/span><\/a>, and <\/span>other forms of debt relief<\/span><\/a>! Contact our <\/span>bankruptcy attorneys<\/span><\/a> and get a free initial consultation today.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Don\u2019t Lose Your Retirement Savings You do not lose everything when it comes to bankruptcy and retirement savings. In other words, you can utilize bankruptcy exemptions to protect your necessary properties. However, this exemption is limited. There are many legal aspects that you need to consider regarding retirement savings.\u00a0 Bankruptcy can have significant implications for […]<\/p>\n","protected":false},"author":1,"featured_media":1433,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"_links":{"self":[{"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/posts\/1432"}],"collection":[{"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/comments?post=1432"}],"version-history":[{"count":1,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/posts\/1432\/revisions"}],"predecessor-version":[{"id":1434,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/posts\/1432\/revisions\/1434"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/media\/1433"}],"wp:attachment":[{"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/media?parent=1432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/categories?post=1432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scottharrislaw.com\/wp-json\/wp\/v2\/tags?post=1432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Short Summary:<\/b><\/h3>\n
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Chapter 7 vs Chapter 13 Bankruptcy\u00a0<\/b><\/h3>\n
Why Retirement Distributions or Withdrawals May Be at Risk and How to Protect Them<\/b><\/h3>\n
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Are Withdrawn Retirement Benefits Exempted?<\/b><\/h2>\n
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Can I Keep My Retirement Accounts?<\/b><\/h2>\n
What Retirement Accounts Are Fully Protected?<\/b><\/h2>\n
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Traditional and Roth IRA Limitations<\/b><\/h3>\n
File Bankruptcy Today Without Hesitations!<\/b><\/h2>\n