
Filing for bankruptcy can feel daunting. Many people worry that they will never get back on their feet after bankruptcy or that retirement will no longer be possible in the future. The good news is that bankruptcy doesn’t have to destroy your retirement planning. Understanding the types of retirement accounts protected in Florida bankruptcy cases and how key exemptions work can help you effectively safeguard your future.
Are you considering bankruptcy and have worries about how it will affect your retirement savings? Contact me today at (407) 749-0080 to schedule a bankruptcy consultation.
Limitations and Exceptions to Retirement Exemptions
Most, but not all, retirement accounts are protected during bankruptcy. You may wonder how you can determine the exceptions. The simplest method to find out whether a retirement account is protected is to evaluate whether it qualifies for federal tax exemptions. This means that your retirement account should be exempt if it is:
- A pension
- An IRA
- A 403(b) account
- A 401(k) account
- A public employee retirement benefit.
Additionally, any type of retirement benefits for teachers, police officers, or firefighters is covered by this exemption.
However, these are far from the only ways that people plan for retirement. Many people plan for retirement by purchasing stocks and bonds or investing in other types of property. Unfortunately, even if you have explicitly made these investments with an eye for retirement, they may not be protected during bankruptcy.
Proactive Tips for Protecting Your Retirement
If you are heading toward bankruptcy, it’s important to be proactive with your retirement decisions. Perhaps the most important step you should take is to avoid taking money out of any account that is explicitly covered by one of these exemptions. The money is only exempt while in the protected account. As soon as you remove it — or even borrow against it — that money becomes part of your bankruptcy estate.
If you have enough warning that you are heading toward bankruptcy, you may be able to take steps to protect more money. While this might hasten your descent toward bankruptcy, it could also help you legally protect more assets.
The Florida Homestead Exemption: Indirect Protection for Retirement
Technically, the Florida homestead exemption doesn’t protect your retirement savings. However, it does protect something just as important: your home. For many Floridians, their home is a key part of their retirement plans. If you own your home outright when you retire, you usually are in a much better position than someone who rents. Doing so allows you to sell your home as part of your retirement plan as well.
The Florida homestead exemption potentially lets you preserve your home, regardless of what type of bankruptcy you file for. Qualifying for it is reasonably easy, too. This can be a greater savings than all of your retirement accounts combined.
Owning your home makes a big difference when you are considering retirement. Florida’s homestead exemption ensures you don’t lose this critical asset when you file for bankruptcy.
The Crucial Role of a Bankruptcy Attorney
It may seem surprising, but most people who hire a bankruptcy attorney end up with more assets after the bankruptcy than those who don’t. This is even true after the cost of the attorney is taken into account. Bankruptcy can be a complicated process. You are required to provide the court with extensive documentation about your current and past finances. Even a slight mistake could delay the process, and a serious mistake can result in losing assets.
A bankruptcy attorney helps you avoid these pitfalls. They have extensive experience uncovering and preserving financial records, and if you consult with a bankruptcy lawyer early enough, you may be able to legally preserve additional assets.
Unfortunately, in the eyes of the law, an honest mistake is often seen as malfeasance. If you don’t have the support of an experienced bankruptcy attorney, you could easily end up in hot water with the bankruptcy court.
When it comes to retirement savings, one of the most critical actions I take as a bankruptcy lawyer is helping clients identify which accounts are protected by the law and prove that to the bankruptcy court. Without an attorney, you can easily fail to identify protected accounts, and you might not be able to provide the documentation that proves that an account is protected. Depending on the size of your retirement accounts, either scenario could cost you tens of thousands of dollars.
Contact Lewis Roberts, PA, to Protect Your Retirement Accounts
Filing for bankruptcy doesn’t have to mean sacrificing your retirement. Bankruptcy laws in Florida allow you to protect some parts of your retirement savings. As an experienced bankruptcy lawyer, I can evaluate your specific situation and determine what steps to take to safeguard your future.
Want to make sure that your retirement accounts are safe after bankruptcy? Contact my law firm at (407) 749-0080 to schedule a consultation as soon as possible.

Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]