Legal Question in Bankruptcy in Kansas

Bankruptcy's effect on Government Thrift Savings Plan (TSP) Account

After Retiring from the Army I went to work for the Federal Government as a civilian. I enrolled in the Thrift Saving Plan, an(Retirement) account that cannot be withdrawn without penalty until I am 59 1/2. It was for my daughters education. Right now I have 24K in that account. QS: If I initiate bankruptcy proceeding will the court take that account or will it be protected from the proceedings. I draw a military retirement, no other income.


Asked on 5/24/98, 7:45 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Thrift savings plan and bankruptcy

The cases go both ways on whether a federal thrift savings plan is exempt in bankruptcy.It is almost certainly not in so far as taxclaims are involved, but it probably (best guess, but don't rely on it) is exempt as toother claims.

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Answered on 7/15/98, 8:25 pm


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