retirement savings or pension rights are the single most valuable asset of individuals filing bankruptcy; especially since our other "nest egg" ; our homes, have let us down.
two very distinct notions determine whether creditors and/ or bankruptcy trustees can seize the debtor's retirement assets:

Is the retirement fund property of the estate?
If the retirement fund is property of the estate, can it be exempted?
Property of the estate question was answered by SCOTUS
The Supreme Court held that retirement plans that have a legally enforceable "anti -alienation" clause (a provision preventing creditors from attaching the retirement funds of a debtor) are not part of the bankruptcy estate and thus are not subject to the jurisdiction of the bankruptcy court and cannot be seized to pay creditors.

Almost all pensions, 401K savings plans, that are qualified under ERISA, (the federal pension savings act) have that anti alienation clause that protects them from seizure by the BK trustee

BUT an exception to the rule is retirement plans that have only one participant, such as single employee corporate plans, and other plans originating in self employment. these plans may be property of the estate. They may be vulnerable to creditors unless subject to an exemption. Get expert professional advice (not your average cookie cutter BK attorney) if this describes an asset of yours.

Assets that are not property of the estate DON'T EVEN HAVE TO BE THE SUBJECT OF AN EXEMPTION these funds simply don't enter into the equation regardless of the size of the benefit. dON'T LET THE TRUSTEE OR EVEN YOUR OWN ATTORNEY INCLUDE THESE ASSETS AS AN EXENMPTION why? because you need that exemption for other property AND they are simply not part of the estate. "Don't let them say well we will just include the plan anyway"

and you may need your exemption for for retirement savings
When retirement savings are property of the estate, because they are not ERISA qualified, or because they are held in an IRA, they may be exempted from the estate under the available exemption statutes.

Property that is exempt is removed from the estate and is not liable for the payment of creditor claims. The exact scope of the exemption and how much value can be exempted depends on the language of the exemption selected.



Exemption expanded
Recent amendments to the Bankruptcy Code have created a federal exemption for IRA's and like retirement vehicles capped at $1 million, and made that exemption available in all states. § 522(n).

Also, the repayment of loans from 401(k) plans is expressly permitted in Chapter 13, a marked change for the better under the 2005 amendments. § 1322(f).

Hope this is good news for you! If you have thattype of assets,m do not shop for the cheapest BK attorney, find one that does corporate BK or other types of wealth.