Local Law Firms Home > Bankruptcy Overview > Chapter 7 > Exempt Property: Pensions Are you contemplating declaring Chapter 7 bankruptcy? Do you have a pension? Many people who are facing bankruptcy and have a pension are worried about the future of their pension. They are concerned with the possibility of all, or a portion of their pension, being taken from them in order to repay some of their debts. However, those with a pension who are contemplating a Chapter 7 bankruptcy can take comfort in knowing that pensions are considered as exempt property. In other words, they are protected and they cannot be taken away from the person declaring Chapter 7 bankruptcy.
Congress completely changed the bankruptcy regulations in 2005. Under these new regulations, almost all retirement account and pension plan funds are classified as exempt property from creditors and collection agencies; in other words, you get to keep them if you declare Chapter 7 bankruptcy. In Chapter 13 bankruptcy, on the other hand, because your retirement accounts are classified as exempt property, they won't impact how much you are required to repay unsecured creditors. To find out more about the role of exempt property in Chapter 13 and Chapter 7 bankruptcy, contact one of our bankruptcy law attorneys today. Do you have legal questions regarding Chapter 7 bankruptcy and exempt property, such as a pension? Our bankruptcy law attorneys are here to help answer all of your questions and inform you of your rights. Contact a bankruptcy lawyer in your area today for more information. Did you know? |