Is a retirement account exempt regarding the collection of a deficiency judgment?
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Is a retirement account exempt regarding the collection of a deficiency judgment?
In a residential real estate foreclosure or short sale, if a lender gets a deficiency judgement, can itgo after the homeowner’s individual retirement account to satisfy the deficiency?
Asked on February 26, 2012 under Real Estate Law, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country, one's retirement account (IRA, pension or 401 k) is exempt from levy by a judgment creditor. Should such an account be levied upon by the judgment creditor that you are writing about, I suggest that you immediately file a claim of exemption with the court concerning the levy to safeguard your retirement.
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