Can I keep my pension plan in bankruptcy?
March 20, 2023 | 30,00 EUR | answered by Katja Winterberg
Dear bankruptcy lawyer,
I am contacting you because I find myself in a difficult financial situation and am considering filing for bankruptcy. My name is Lukas Jung and I am 45 years old. For some time now, I have been struggling with debts that I have accumulated due to unemployment and health problems. Despite all efforts, I have not been able to repay my debts so far.
I am very concerned about my retirement savings. I have a small balance in a savings account and regularly contribute to a private pension plan. Can I keep this retirement savings in bankruptcy or would I have to surrender it as part of the bankruptcy proceedings?
I would like to know if there is a way to protect my retirement savings and how best to proceed to secure my financial future. Are there specific regulations or exceptions in bankruptcy law that could help me preserve my retirement savings?
I thank you in advance for your support and expertise in this matter. Your assessment and advice would be of great importance to me in making an informed decision.
Sincerely,
Lukas Jung
Dear Mr. Jung,
Thank you for your inquiry and your trust in my expertise as a bankruptcy lawyer. I am sorry to hear that you are facing a difficult financial situation and struggling with debts. I am here to offer you advice and support.
Regarding your question about your retirement savings in the context of a bankruptcy proceeding, I can provide you with the following information: In a bankruptcy proceeding, all of your assets are considered part of the bankruptcy estate and can be used to satisfy creditors. This includes your retirement savings, which are generally not protected before bankruptcy.
However, there are exceptions and regulations in bankruptcy law that allow certain assets to be protected before bankruptcy. One way to protect your retirement savings is to structure them in a way that complies with the legal exemption rules. This means that certain amounts designated for retirement savings are protected from garnishment.
Additionally, you can structure a private pension plan in such a way that it is recognized as a "Riester-Rente" or "Basis-Rente." These forms of retirement savings enjoy special protection in bankruptcy and are not included in the bankruptcy estate.
It is important to seek legal advice early on and consult with an experienced bankruptcy lawyer to protect your retirement savings and secure your financial future. Together, we can develop a strategy to safeguard your retirement savings and represent your interests effectively.
I hope this information is helpful to you and I am available for any further questions you may have. Please do not hesitate to contact me to schedule a personal consultation.
Sincerely,
Katja Winterberg
Bankruptcy Lawyer
