Can a party with a monetary judgement awarded against me attack my rollover IRA?
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Can a party with a monetary judgement awarded against me attack my rollover IRA?
Asked on December 16, 2011 under Bankruptcy Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If there is a judgment against you, the judgment creditor can try and levy upon your IRA account to get some if not full satisfaction of the judgment. In most states in this country, one's retirement accounts are exempt from levy by a judgment creditor.
However, if a retirement account is levied upon by a judgment creditor, notice of the levy is sent to the judgment debtor by the sheriff's department serving the levy. When notice is received, the judgment creditor if he or she does not want to permanently lose the retirement account, he or she must immediately serve and file a claim of exemption as to the levy. The court then makes a ruling as to whether or not the levy can actually keep the retirement account seized.
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