Olympia, Washington Bankruptcy Attorneys

Bankruptcy and Your Retirement

What happens to my retirement if I file an Olympia bankruptcy?

In almost all situations, our Olympia bankruptcy lawyers can protect it!

Call now to learn how.

(360) 350-3435

What happens to my retirement plan in an Olympia bankruptcy?

The purpose of bankruptcy is to get you a fresh start. If you had to cash in your entire retirement savings plan, that would not be a fresh financial start.  The purpose of filing a bankruptcy is to get you out of the debts that you owe without destroying you financially.  When Congress passed our bankruptcy laws, they decided that most retirement accounts should be totally protected in bankruptcy.

To be protected, a retirement plan needs to be “ERISA qualified”. ERISA stands for the Employee Retirement Income Security Act.  To be ERISA qualified, a retirement plan usually only needs to be set up by your employer with certain tax benefits.  You can ask your employer whether your retirement plan is ERISA qualified.

If your retirement savings is in some other kind of account, there is only so much you can protect.  No matter what kind of retirement plan you have, it is important that you seek an Olympia bankruptcy attorney’s advice if you are considering filing for bankruptcy. 

If you have questions about whether or not your retirement will be fully protected in an Olympia bankruptcy, we invite you to call our offices for an initial consultation.  One of our Olympia bankruptcy lawyers can review your retirement assets and then determine whether or not it can be protected.

Unfortunately, you will hear financial advisers in the media tell you that bankruptcy should always be your last option.  In many situations, this is simply not sound advice.  As result of this advice, however, many people are tempted to drain their retirement plans in order to avoid filing an Olympia bankruptcy, only to file bankruptcy eventually anyway.  Sadly, our Washington State and Olympia bankruptcy attorneys have seen this very scenario play out hundreds and hundreds of times over the years.

The issue of one's retirement and how it can be fully protected in a bankruptcy seems to be one of the most widely misunderstood aspects of our bankruptcy laws.  Your retirement plan is a necessity and is will probably be fully protected in bankruptcy – social security just isn’t enough for retirement. That’s why you should talk to an experienced WA State and Olympia attorney about getting a true fresh start without having to cash in your retirement plan.