Can I protect my retirement funds from creditors in MO?
(Blue Springs MO )
I am waiting for my disability to be approved. I have lost my job, all my rental properties I owned have been foreclosed on due to not having money to pay the deficiency of rent and I have not had any income since May 30, 2012. I had managed to protect a small amount to money set set aside for retirement and emergencies. It is IT!
Is there a legal way I can protect my retirement funds? I am 59 and a half years old, married, so far own our own home in a Revocable Trust.
Any advice would be greatly appreciated!
Reply from DebtCollectionAnswers.com:
Jon - You don't say exactly how these funds are saved: IRA? 401(k)? Retirement funds are often protected from creditors as long as they are in ERISA qualified accounts. But if this money is simply stashed in a bank account or a CD then it probably isn't exempt.
That's why we always recommend someone in a situation like yours at least consult with a bankruptcy attorney. You may be facing lawsuits over deficiencies, and possibly even taxes for cancelled debt. The attorney can help you figure out if there is something at risk you need to protect by filing for bankruptcy. Or it may be that the attorney says there is no point in filing because there is nothing creditors can effectively do to collect.
But you'll have a better chance of putting this financial nightmare behind you if you get professional advice. If you need help finding an attorney, here's a resource that will provide a free initial evaluation with a bankruptcy attorney.
We wish you the best going forward.
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