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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Filing Bankruptcy: What Happens To My Retirement?

Many prospective bankruptcy filers worry about what is to come to their retirement savings accounts. You may wonder if you will lose the savings that you may have been building for years or even decades.

Can I Keep What I’ve Saved?

Retirement savings accounts have been broadly protected from the reach of Chapter 7 trustees and excluded or exempted in the asset analysis in Chapter 13. To put it more simply, your current retirement savings can be fully protected and exempted without a limit or cap.

Voluntary and Mandatory Retirement Contributions and the Means Test

Some employers have mandatory retirement contributions. For example, if you are a public employee, public school teacher, or you work for the state or your city, you may have a mandatory contribution to CalPERS or STRS. Those contributions are likely mandated by your employer and they cannot be adjusted or stopped. Mandatory contributions can be calculated into the means test and reduce your disposable monthly income available to pay off creditors.

Other private employers may offer 401K or IRA retirement plans to their employees. These are a voluntary contribution. Voluntary contributions are not taken into consideration when calculating your disposable monthly income available for creditors.

Can I Keep Contributing?

If you have a voluntary retirement account such as a 401K, IRA or 403B, you can likely continue your voluntary contributions if you are filing a chapter 7. However, if you are filing a chapter 13 bankruptcy, there are circumstances that you may have to pause your voluntary contributions while you are making payments to the trustee in order to make your repayment plan feasible. If you have enough disposable income that you can afford the repayment plan there are some circumstances where you may be able to continue to contribute.

If you have questions about your retirement accounts and bankruptcy, reach out to your Folsom bankruptcy attorney at (916) 780-7005.

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