How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask VanDLaw Your Own Question
VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
Type Your Bankruptcy Law Question Here...
VanDLaw is online now
A new question is answered every 9 seconds

i am about to file chapter 7 in new jersey. will my personal

Resolved Question:

i am about to file chapter 7 in new jersey. will my personal roth ira (not a work related account)be attacked by the creditors. if it is i will not contribute this year. what should i do.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 7 years ago.



Your Roth IRA cannot be seized by the Trustee to pay your creditors if you file Chapter 7. It is exempt from creditors. However, be careful about contributing to your IRA as they could accuse you of transfering the money into the IRA because it is exempt, and therefore be a fraudulent transfer. I would suggest waiting to contribute this year, knowing that the account will be there when the bankruptcy is discharged and contribute a bit more next year.


Here is the law:

Trust containing personal property created pursuant to federal tax law, including 401(k) plans and higher education (529) savings plans, IRAs, Roth IRAs Excluded from bankruptcy estate
N.J. Stat. Ann. § 25:2-1

VanDLaw and 2 other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions