Will I lose my retirement funds if I file Chapter 7 Bankruptcy in Arizona?
Probably not. A.R.S. § 33-1126(B) provides the exemption that applies to “any money or other assets payable … from … a retirement plan which is qualified under §§ 401(a), 403(b), 408 or 409 of the United States Internal Revenue Code of 1986 … from any and all claims of creditors of the beneficiary or participant.” However, In re Flindall, 10,5 B.R. 32 (Bankr.D.Ariz.1989) and In re Hirsch, 9,8 B.R. 1 (Bankr.D.Ariz.1988) held that A.R.S. § 33-1126(B) is preempted by the...
Read More