Not All Monies In Retirement Accounts are Exempt From Bad Debt Collection

 Not All Monies In Retirement Accounts are Exempt From Attachment

…The exemption in this section for plans maintained by an individual, whether or not self-employed, shall not apply to sums deposited, determined without regard to deposits pursuant to a rollover or transfer except to the extent protection under this section would be limited in the absence of a rollover or transfer, in said plans during the five year period preceding the individual’s declaration of bankruptcy or entry of judgment in excess of 7 per cent of the total income of such individual for such period.

Judgment creditors should make sure that they examine not only monies in a debtor’s regular bank accounts, but also those held in retirement accounts. This statute is designed to protect creditors from a debtor using creditor money to finance his or her retirement. When retained to  collect bad debt, I carefully review all financial information to determine whether there are any hidden assets from which to get my clients paid.

Contact me at 508 620-6900 or Alanmcohen@collections-law.com for a free thirty minute consultation concerning your business needs.

 

 

 

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