Published On: September 22nd, 2014 | Author: Perry Law, P.C. | Category: Arizona Bankruptcy Creditors' Rights Florida Idaho Nevada Washington
When a person files for bankruptcy he/she may exempt certain assets from the bankruptcy estate, including retirement funds (i.e. IRAs) under 11 USC 522(b)(3)(C). However, in Clark v. Rameker, 134 S.Ct. 2242, the Supreme Court ruled that inherited IRAs do not qualify as retirement funds under that exemption. The SC focused on three legal characteristics: 1) the holder of the inherited IRA may never invest additional money, 2) the holder of the inherited IRA may withdraw money, regardless of how many years away from retirement they are, and 3) the holder of the inherited IRA may withdraw all of the money, regardless of purpose, without penalty. With all assets, its important to understand their treatment before filing for bankruptcy.
When faced with a difficult legal situation, you want to make certain you have the best representation and legal team in your corner. At Perry Law, our attorneys and support team are here to ensure you the most sound advice and legal counsel possible. Perry Law is a regional law firm with attorneys licensed in Arizona, Florida, Idaho, Oregon, and Washington. The firm represents over seventy years of combined legal experience.