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Does filing bankruptcy put any possible future ESOP, or existing 401k or other retirement plans in jeopardy?

April 26, 2017Bankruptcy ESOP existing filing future jeopardy possible retirement plans

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Does filing bankruptcy put any possible future ESOP, or existing 401k or other retirement plans in jeopardy?

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Filing for bankruptcy does not offset your future right to invest in a retirement account. For those with a current 401k, the debtor will keep the 401k because the Supreme Court has ruled that 401k accounts are not property of the bankruptcy estate. Therefore, a debtor can discharge debt and keep his or her 401k. A debtor may have other types of retirement accounts. Most ERISA qualified retirement plans are protected. A debtor is best advised to discuss the effects of bankruptcy on his or her retirement account with one of our qualified attorneys.