Creditors Blocked From Accessing Bankrupt Man's Retirement Funds
The creditors of a man who filed for bankruptcy protection can’t access his $1.7 million in retirement funds by arguing that he mishandled the accounts in ways that flouted federal law, the Third Circuit said Thursday.
Even if the accounts failed to comply with the requirements of the Employee Retirement Income Security Act, they’re still protected from bankruptcy creditors because of an ERISA provision prohibiting retirement savings held in employer-sponsored plans from being “assigned or alienated” for other purposes, the US Court of Appeals for the Third Circuit said.
Federal district and bankruptcy courts both said the accounts were shielded …