Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Question: CA Family law/Federal Bankruptcy question: our remaining assets for division are retirement accounts, most of which are in my name. The property has not been split yet, as it appears endless llitigation is desired (there's been a 2 year discussion and several document productions for the QDRO so far). I will likely have to file BK within the next year or so. It is highly unlikely that the property division will be complete by then. How will the BK court handle this? Response 1: Once you file for bankruptcy protection, your division of assets would be delayed much further. The filing of the bankruptcy protection would stay the proceeding in your divorce case dealing with the assets division because the assets involved are now property of the bankruptcy estate. In order to continue with the asset division, you must first get permission of the bankruptcy Court to continue with the property division in your divorce case. You would not have any objection from the bankruptcy trustee if the assets remaining to be divided are only the retirement accounts. Your individual retirement accounts are exempt from execution--they are out reach of your creditors up to $1, 171, 650.00; 401ks, 403s, SEP IRAs, have unlimited protection. My understanding is that retirement assets exempt from creditors. Response 2: Yes, but see my previous response. I'll probably file Ch 13, but would also like to know if your answer applies to Ch 7 as well Response 3: Yes, it does.