Kansas and Missouri Debtors Can Protect Their Retirement in Bankruptcy
Filing for bankruptcy can be daunting, especially when you’re worried about the security of your retirement savings. If you’re in Kansas or Missouri, you can breathe a sigh of relief. Here’s what you need to know about protecting your retirement when filing for bankruptcy.
Chapter 13 Bankruptcy:
In a Chapter 13 bankruptcy, you repay your creditors through a 3 to 5-year repayment plan. The trustee in a Chapter 13 case does not seek to sell your property, meaning your retirement accounts remain safe.
Chapter 7 Bankruptcy:
In a Chapter 7 bankruptcy, the trustee looks for non-exempt property that can be liquidated to benefit your creditors. Fortunately, in Kansas and Missouri, your 401k, IRA, Roth IRA, pensions, and other qualified retirement accounts are considered exempt property. This means you won’t lose these accounts even if you file for Chapter 7 bankruptcy.
However, stocks, bonds, annuities, and other investment accounts are not exempt and can be liquidated. Exceptions exist for debtors who rely on these investments for necessary expenses due to illness, disability, age, or death.
Understanding Bankruptcy Exemptions:
Bankruptcy exemptions can be complex and vary by state. To ensure you get the full benefit and protection under the bankruptcy code, it’s crucial to consult with an experienced Kansas City bankruptcy attorney.
Know Your Options:
Understanding your options and the protections available can make the bankruptcy process less stressful. Connect with a knowledgeable attorney to explore your personalized legal solutions.
