What Happens if I Take Money Out of My Retirement Account During Bankruptcy?

Retirement accounts fall outside of bankruptcy in the Greater Boston Area. This means that the bankruptcy trustee cannot touch it for up to $1,050,000.

Once some money is taken out however, then the net amount left over after fees and taxes will be included within the bankruptcy estate and the trustee can touch it to pay unsecured creditors.

Therefore, beware! taking money out of your retirement account in the is usually an extremely unfavorable idea