The MLG Blog

What happens to my 401k if I file Bankruptcy in Minnesota?

January 06, 2010

Qualified ERISA retirement plans such as a 401k are often a point of concern for debtors. Many people believe that if they file bankruptcy in Minnesota they will loose their retirement savings. This just is not true. The bankruptcy code (specifically 11 USC 522(n) states that individual retirement accounts are excluded from bankrupcy for all amounts up to about $1,000,000.00. This essentially means that if you have 401k’s etc. that total less than $1,000,000.00 you will be allowed to keep those accounts through your bankruptcy without loosing any of the money to the bankruptcy estate.

Like all things there are exceptions, such as single employee plans or self employment plans require a more detailed analysis. Your bankruptcy attorney will be able to assist you in determining if your retirement plans are covered under this code section.

MLG Bankruptcy group has been protecting retirement plans through bankruptcy for years. If you have questions about your particular situation please feel free to contact us. I can be reached at .(JavaScript must be enabled to view this email address) or at 952-841-0000.


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