MenuRetirement accounts are often a significant asset of individuals and families facing financial hardship following a job loss, major medical expense, divorce, or other occurrence. Tapping a retirement account is an enticing option when faced with not being able to pay bills. This option often only is a short-term fix, and can make things worse if bankruptcy is ultimately filed. Bankruptcy can protect retirement, but cannot un-spend a spent account.
Retirement Exemption
There is no single retirement exemption, but a multitude of exemptions and exclusions for a variety of different retirement plans or entitlements. North Carolina has an exemption for individual retirement accounts that comply with certain federal tax laws, or is a plan treated in the same fashion. Employer-sponsered retirement and public retirement benefits are often protected by other laws.
