Property you own is included in your bankruptcy estate unless your Woodlands Bankruptcy Attorney manages to find a legal basis for exempting it. One of the common exemptions people take advantage of is the exemption for retirement accounts. Unfortunately, this exemption is not without limits and a recent case reminds us of the boundaries of this bankruptcy exemption within the federal bankruptcy exemption rules.

Janice Chilton, a debtor in a bankruptcy case, claimed the IRA she inherited from her mother is exempt under §522(d)(12). The discussion that follows is limited to the federal exemption for retirement accounts and not the Texas exemption.

Section 522(d)(12) of the Bankruptcy Code allows your Woodlands Bankruptcy Lawyer to exempt “[r]etirement funds to the extent that those funds Read more…