Supreme Court Ruling
Helps Debtors
By: David Soble
Supreme Court Ruling Keeps Creditors
at Bay: Helps Debtors
On Monday, April 4, 2005, the United States
Supreme Court ruled in a recent bankruptcy matter that funds
held in an Individual Retirement Account (IRA) are exempt
from being included in a debtor’s assets, and therefore
beyond the reach of creditors. Under the federal bankruptcy
code, stock bonuses, pension, profit-sharing, and annuities,
are exempt from calculation of debtor assets.
This is excellent news for senior citizens
who are fast becoming a significant proportion of debtors
filing for bankruptcy. Under Monday’s ruling, they now
have one more investment vehicle that will be able to retain
their retirement funds and keep them out of the bankruptcy
proceedings.
Moreover, the court ruling provides one
more good reason for individuals, regardless of age, to set
aside funds in a qualified retirement account. To do so, one
should seek advise of a professional financial advisor.
Source: USA TODAY, April 5, 2005
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