When I'm trying to prove insolvancy so I can settle my debts, are retirement savings, such as 401(k) considered assets?
Thank you
Retirement accounts are protected in bankruptcy court and are generally safe from creditors, but that doesn't stop creditors from looking at them when deciding if you have the wherewithal to pay your debts. And that makes sense - if someone had a million dollars tucked away in retirement accounts, it would make sense that they shouldn't get the same consideration as someone who had nothing.
Retirement accounts' inaccessibility to creditors is one good reason to contribute to retirement accounts and to continue to contribute even in lean times.