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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2830
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I purchased a tax deferred annuity (TDA)( not a qualified retirement

Customer Question

I purchased a tax deferred annuity (TDA)( not a qualified retirement plan) before my marriage. I am now filing for a divorce and, perhaps, may have to file for bankruptcy. Is my TDA exempt from bankruptcy or is at-risk money?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
If it was thru an employer, then it should be exempt. If it is ERISA qualified, then it is exempt. If it is in an IRA or a 401k then it is exempt. If not, and it was just an investment you purchased on your own, then there is a chance it might not be protected in a bankruptcy filing. Bring in all the documents to your bankrutpcy lawyer (or when you meet with one) to review if it is exempt or not.
Customer: replied 7 years ago.
I am in the state of California. I know bankruptcy varies from state to state. Do you have any specifics for California? I already knew what you listed as to federal bankruptcy law.

     Thank you,
                           Customer
Expert:  Terry L. replied 7 years ago.
Yes, I reviewed the california exemptions as well,and there is no other investment exemption except the ones I listed previously.
There are 2 sets of exemptions, chosing one when you file:

703 California Code of civil procedue 703.140(b)
704 California code of civil procedure
Customer: replied 7 years ago.
How do I determine if my TDA is ERISA qualified?

   Thank you,
                     Customer
Expert:  Terry L. replied 7 years ago.
If it was purchased thru an employer, then it may be ERISA qualified.
ERISA = Employee Retirement Income Security Act
The documents would say ERISA qualified somewhere on them,
Good Luck