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Bird & Van Dyke, Inc. - A Professional Law Corporation

Local Attorneys, Local Representation

Free Initial Consultation

Stockton 209-390-8877

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Bird & Van Dyke, Inc. - A Professional Law Corporation
STOCKTON
TRACY
Contact us for a
Free Initial Consultation

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Local Attorneys, Local Representation

We help clients throughout Northern California overcome their legal challenges and move forward with their lives.

A Former Prosecutor Working For You.

Our inside knowledge gives clients the edge they need to defend themselves against criminal charges.

Get Compensation After An Accident

At Bird & Van Dyke, we help clients put the pieces back together after being injured in an accident.

Meet Our Legal Team

Contact us at 209-390-8877 to schedule a free consultation.

LOCAL ATTORNEYS, LOCAL REPRESENTATION
LOCAL ATTORNEYS, LOCAL REPRESENTATION

Filing for bankruptcy is the reality for many people in California who desire to lessen their debt and start over. While bankruptcy provides notable relief from pressing financial obligations, people should understand its impacts as well.

One concern people may have is how filing for bankruptcy will affect the retirement benefits they have worked hard to accumulate. Understanding the correlation between these two elements may help people make wiser decisions about how to proceed.

The purpose of exemptions

Bankruptcy exemptions allow people to maintain some control over their financial assets. This enables them to have adequate resources to continue living their lives and have enough to start over again. According to Smart Asset, exemptions come in the form of home equity, clothing, vehicles and property among other things. A fixed dollar amount for each of these exemptions ensures that people do not exceed a specific monetary maximum in order to maintain their possessions within each category. Depending on state laws and a person’s specific situation, the amount of stuff they are able to keep may fluctuate.

Protecting retirement benefits

The California Legislative Information informs people that Social Security benefits are exempt from bankruptcy proceedings. Unmatured life insurance policies are protected too. All public retirement benefits including pensions and annuities, as well as union paid benefits and incentives, are exempt as well.

Under the section that discusses the outcome of private retirement accounts, profit-sharing plans designed with the sole purpose of sustaining retirement, are exempt. While there are some exceptions, the accumulation of assets and benefits with the intent of utilization for retirement, are exempt from use in paying back debt during bankruptcy.