Legal Question in Bankruptcy in California

IRA's are generally exempt (protected from creditor judgments and protected from liquidation in bankruptcy). However, one should always exercise caution and consult with legal counsel to ensure that assets are not lost in bankruptcy. A "reasonable and necessary" standard may be applied to how much retirement funds a debtor may keep.

Standard disclaimer: the above statements are opinion with a general, rather than specific application provided for informational purposes only; they do not constitute legal advice, do not create an attorney-client relationship, and should not be relied upon as they do not anticipate all conflicts, contingencies and factors of which only an attorney of record would know. Congress keeps busy legislating and these statements may not reflect the current state of the law. All bankruptcy petitioners should seek legal counsel.