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What type of retirement account are you asking about (eg. IRA, 401K, etc.)?
You can only exempt money in an IRA-qualified retirement account. You cannot exempt the money you will be getting to sell your business because you have no other funds available for retirement. However, you may be able to exempt them in another manner - if you do not need to use the entire homestead exemption to protect your home, you can use part of that exemption to protect the money you receive from the sale of your business.
To help determine this, please answer the following:
1) What is the value of your home?
2) What is the balance on the mortgage for your home?
3) Will you be receiving $13,000 total (2 payments of $6,500)?
Then you can exempt those payments using California Stat. 703.140(b)(5). With that particular exemption code, you can exempt up to $23,250 worth of any property - including the money you will receive for selling your business.
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