i have accumulated so much debt that i am now taking money from my retirement savings to live on. does that mean that creditors could attach this money because they see it as an asset that is accessible because i've been taking it out & depositing it in my checking account. my only other income is social security.
Country relating to Question: United States
State (if USA): Oklahoma
have obtained no legal advice yet because i'm not sure if i will need to file a bankruptcy. there is enough money in my retirement account to pay the debt (about $25,000) but i hate to use it because when its gone i cant live on my social security alone.
Hello,Thank you for using JA. While retirement funds are being held in the retirement account, they are exempt from creditor attachment for debts. However, once they are withdrawn from the retirement account, they lose that immunity and are considered non-exempt assets that could be seized by creditors if they file suit and get a judgment and Writ of Garnishment against the debtor..But any Social Security income is considered exempt under federal law from seizure or garnishment..
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when you say the $ from the retirement account can be attached by creditors once it goes to my checking account, do you mean ALL the $ or just the $ that has been deposited in my checking? is the remainder safe?
Just the money that has been removed from the retirement account. The remaining money in the retirement account would still be protected from garnishment or seizure under federal law..Once money is removed and deposited into a checking account, it loses that protection..
I am not entering into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.
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