Q: I am on disablity income. I have a annuity with several judgements against me. can they take annuity?
A:
It depends. Most retirement income is exempt in bankruptcy, but for purposes of a state court judgment outside of bankruptcy, then bankruptcy law does not apply. The annuity may be exempt under ERISA (a federal law) or exempt under some other exemption.
I suggest that if you receive papers called a "notice of rights to have exemptions designated" and "motion to claim exempt property" that you go and seek legal help so that you can discuss whether the annuity would or would not be exempt. Even if it is not expressly exempt, you may still be able to exempt the income under your "wild card" exemption of $5,000.
A:
It depends. Most retirement income is exempt in bankruptcy, but for purposes of a state court judgment outside of bankruptcy, then bankruptcy law does not apply. The annuity may be exempt under ERISA (a federal law) or exempt under some other exemption.
I suggest that if you receive papers called a "notice of rights to have exemptions designated" and "motion to claim exempt property" that you go and seek legal help so that you can discuss whether the annuity would or would not be exempt. Even if it is not expressly exempt, you may still be able to exempt the income under your "wild card" exemption of $5,000.
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