Legal Question in Bankruptcy in New York

I am a retired New York City Public School Teacher. My assests are: 1) NYC Pension;2)Tax Deffered Annunity (403b) and 3) IRA. I'm considering filling personal bankruptcy. Under the new bankruptcy law can these assets or income from my pension be used to pay off my debt or are they exempt and cannot be used to pay off my debt. I have no other assests. I am not collecting social security at this time.


Asked on 7/01/10, 4:26 am

2 Answers from Attorneys
Locksley Wade Law Office of Locksley O. Wade

Given that these are government pension plans that qualify under the ERISA rule against alienation (except the IRA) they will be protected from invasion by a creditor.

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Answered on 7/01/10, 9:54 am
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

IRA's are also exempt assets in bankruptcy, in addition to your annuity. Your pension, assuming it is paid on a monthly basis, would be considered income, not an asset. Your income is a factor in determining your eligibility to file a Chapter 7 bankruptcy.

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Answered on 7/01/10, 2:51 pm


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