Is a retirement account exempt regarding the collection of a deficiency judgment?

In a residential real estate foreclosure or short sale, if a lender gets a deficiency judgement, can itgo after the homeowner’s individual retirement account to satisfy the deficiency?

Asked on February 26, 2012 under Real Estate Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country, one's retirement account (IRA, pension or 401 k) is exempt from levy by a judgment creditor. Should such an account be levied upon by the judgment creditor that you are writing about, I suggest that you immediately file a claim of exemption with the court concerning the levy to safeguard your retirement.


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