Can the bankruptcy trustee touch my pension fund?

 A “bankruptcy estate” is a term that refers to your valuable assets that may be sold by a bankruptcy court in order to make payments on your debt.  Certain assets that belong to a debtor are exempt from liquidation (sale) to pay debts, but the exemptions used in bankruptcy court are those established by state law exemption statutes.

In general, most states have statutes that exempt pension funds and 401K accounts from liquidation, and under some state statutes, a pension fund is not even included in the bankruptcy estate.  You are allowed to keep such exempt assets, free from any threat of liquidation. 

If a creditor has placed a lien against exempt property or attempted to garnish money from it, you should immediately inform your bankruptcy attorney.  Your bankruptcy attorney can file a motion with the bankruptcy court to “avoid” (eliminate) the lien, and the bankruptcy court will most likely ensure that the lien is removed.  For more specific or detailed answers that apply to your personal situation, you should consult your bankruptcy attorney.

Talk to a Bankruptcy Lawyer to learn more about the protections offered by bankrutpcy law, and if it's the right choice for your situation.

Good luck.