Debt Collection Blog

"Relentless Collection Attorneys"

Alan Cohen

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

M.G.L. c. 235 § 34A, in relevant parts, states that:
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 for a free 30-minute consultation concerning your business needs.

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