The answer in almost every case is no. One of the few good things to come out of the new bankruptcy laws of 2005 was more protection for the retirement savings of people who file bankruptcy.

Pension plans that are qualified under ERISA (Employment Retirement Income Security Act) are  protected.  And Oklahoma law provides specific protection for state pensions for teachers, judges, police officers, law enforcement employees, firefighters, disabled veterans, county employees, and other public employees. Additionally, savings that are invested in retirement accounts including 401Ks, 403Bs and IRAs are protected.

Be aware that your retirement savings must actually still be invested in the pension or other retirement account to be protected. Any funds that you have withdrawn from these accounts are no longer protected.

Not all retirement savings is protected when you file bankruptcy such as retirement accounts that are not ERISA qualified. And if you keep your retirement savings in a regular bank or credit union savings account, under your mattress, or buried in your back yard, I’m afraid I have bad news for you. You guessed it – no protection.

As with all things bankruptcy, the answer to this question depends on the facts of your specific circumstances. Therefore, you should seek the advice of a qualified bankruptcy attorney.

If you’re considering filing bankruptcy and have questions about your retirement savings, contact me today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.