Can debt collectors go after your retirement savings in court?
Although federal law sets the basis to protect consumers’ assets from creditors, 33 states have also enacted laws to protect borrowers’ retirement savings from aggressive creditors.
When it comes to retirement savings, the level of protection will often vary whether the asset is a 401(k) or an IRA. For example, in California a substantial difference exists between the two, whereas Florida and Texas treat the two accounts virtually the same.
In order to ensure your retirement savings is protected from your creditors. it is best to consult with an attorney. Although the rule of thumb in Florida is that both IRAs and 401(k)s are protected assets, an attorney can properly advise you whether your retirement account is protected as there are important rules that you must follow, for example, in instances when you roll your 401(k) into an IRA.
Learn more about protecting your savings
When it comes to the rules on what debt collectors are entitled to in Florida, and to understand the IRA and 401(k) specifics, it is best to consult an experienced bankruptcy lawyer in West Palm Beach. If you find yourself wanting to learn more about your specific situation pertaining to debt collection and savings, we invite you to call Kelley Kaplan & Eller, and speak with one of our knowledgeable bankruptcy attorneys today.