Current Bankruptcy Implications for Inherited IRAs
Should you be thinking differently about filing for Chapter 7 bankruptcy if you recently inherited an individual retirement account (IRA)? According to a recent article in The Detroit News , inheriting an IRA can actually make a big difference in terms of your personal finances and what you can gain by filing for consumer bankruptcy . Based on the U.S. Supreme Court’s ruling in Clark v. Rameker , inherited IRAs are not associated with the same protections as IRAs that were not inherited. Although the case was decided in 2014, the article emphasizes the need for debtors to revisit the decision and its remaining implications for personal bankruptcy cases. How Inherited IRAs Can Affect Your Bankruptcy Filing Why should an IRA impact your personal bankruptcy filing? After all, debtors are entitled to a number of exemptions that allow them to keep certain property even after filing for liquidation bankruptcy. IRAs and 401(k) accounts are exempt up to a certain cap. The fe...