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 Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 36226
Experience:  16 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
19958803
Type Your Legal Question Here...
Barrister is online now
A new question is answered every 9 seconds

I have a couple of pensions on which I am now eligible to start

This answer was rated:

I have a couple of pensions on which I am now eligible to start receiving annuities. Are these payments subject to attachment by creditors?
Hello and thank you for using JA! My goal is to provide you with excellent service and help with your legal problem.
.

There are some types of income that are exempt from garnishment by unsecured creditors except in limited circumstances. These include Social Security, pensions, retirement, IRAs, 401K, Disability, Veterans benefits, unemployment and worker's compensation. The exceptions include child support, alimony and student loans.


If the payments from these annuities are based on a retirement account or pension, then no, they would be exempt from creditor claims under federal law.
.

.

.

Thanks.

Barrister

.

If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

.

I cannot enter 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. The information provided is not a substitute for a local attorney’s legal advice.

Customer: replied 3 years ago.

Help me understand how pension payments would be affected by secured creditors.

There wouldn't be a secured creditor unless you somehow pledged the retirement account as collateral for some type of loan. If memory serves, lenders are not legally allowed to use retirement accounts as collateral for loans strictly because they are exempt from creditor claims under 11 USC 522.
.
So I don't believe there is any way you could legally have a "secured creditor" with a claim against a retirement account.
.
.
Thanks
Barrister
Customer: replied 3 years ago.

That's what I thought. I asked the question because you referred to unsecured creditors in your original answer. I wondered if secured creditors were treated differently.

Typically the rules are different for unsecured vs. secured creditors for debts, but for retirement accounts you can just say "creditors" are prevented from liening or garnishing any retirement payments or accounts.
.
.
Thanks
Barrister
Barrister and 5 other Legal Specialists are ready to help you

Related Legal Questions