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Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6422
Experience:  20 years of professional experience
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Can my retirement pension and 401k be garnished from losing

Resolved Question:

Can my retirement pension and 401k be garnished from losing a civil lawsuit?
I was a personal guarantee for a business line of credit.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Maverick replied 8 years ago.

What state do you reside in and what is the amount of the judgment?

 

Are you retired?

Customer: replied 8 years ago.
I am retired and the amount is $154,000.00 (business line of credit).
Expert:  Maverick replied 8 years ago.
Did you work for a governmental entity or school to earn your retirement pension?
Customer: replied 8 years ago.

I did not work for a governmental entity or school. I was a registered nurse.
Expert:  Maverick replied 8 years ago.

Qualified retirement plans and IRAs are protected under the new bankruptcy legislation.

 

Outside of bankruptcy, ERISA provides nearly unlimited antialienation protection to qualified retirement plans (pensions, profit-sharing and 401(k) plans). State law generally protects traditional and Roth IRAs.

 

SEP and SIMPLE IRAs and owner-only plans, however, require additional planning to insulate them from creditor claims.

 

See links below regarding NJ Statute 25:2:1(b) and qualifying trusts such as 401ks being exempt from the claims of creditors.

 

 

http://law.onecle.com/new-jersey/25-frauds-and-fraudulent-conveyances/2-1.html

 

 

http://www4.law.cornell.edu/uscode/uscode26/usc_sec_26_00000401----000-.html

 

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