Bankruptcy and Assets
Many people worry about what will happen to their assets when they file for bankruptcy. And is it possible to remove a bankruptcy? Certain types of assets are considered exempt and cannot be seized by creditors in the event of a bankruptcy filing, but the laws are complicated and may vary from state to state. As a general rule, money in tax-exempt retirement funds is exempt from your creditors, although there are limits to the amount of money that can be protected. Money that is placed in a qualified college education fund is usually protected, so long as the beneficiary is a child, although there is a limit to how much money can be placed in such funds in the two years prior to filing for bankruptcy.
