Why do I say retirement plans are your saving grace in bankruptcy? Because you can (almost always) keep all of the money in them if you file bankruptcy, not losing it to your creditors. Let's look as what that means for you.
The 2005 bankruptcy laws provided a $1 million exemption (protection from your creditors) for your IRA (Individual Retirement Account) if you file bankruptcy. That's great, but you need to know more than that. (more…)