Lawsuits
My Client has Lazheimer & cosigned on a mortgage & the other person did not Pay, now the bank is trying to attach his IRA account. Can they do this ?
My Client has Lazheimer & cosigned on a mortgage & the other person did not Pay, now the bank is trying to attach his IRA account. Can they do this ?
Permalink Submitted by Danielle Hayes on Thu, 2008-03-20 17:45
no the bank cannot attach the IRA asset because in 2006 the pension protection act implemented protects your IRAs just as if it were an employer 401k or qualified plan. It protects your IRA assets from creditors.
Robertreby.com
Permalink Submitted by Alan Spross on Thu, 2008-03-20 23:44
This may depend on the state of residence and their asset protection for IRA accounts. The federal bankruptcy Act (October, 2005) does protect IRAs up to 1,000,000, but only if bankruptcy protection is sought in federal court. This protection still falls short of ERISA protection in some areas, but the state provisions may provide relief.
Check the applicable state provisions per following link:
http://www.assetprotectionbook.com/state_resources.htm