Are Retirement Accounts Protected in a Bankruptcy?
Since the Covid-19 pandemic-era relief programs are slowly expiring, bankruptcy cases are exponentially increasing in Minnesota. For bankruptcy cases, I often get asked, “will my retirement account(s) be exposed to the trustee? Are they protected?” The answer is almost always yes. Under both the state and federal exemptions an ERISA qualified plan is protected in full (barring some last-minute transfers). The plans are protected, not just because they are exempt, but because they never become property of the bankruptcy estate and do not need to be exempted. The language of the ERISA statute essentially creates a spendthrift trust. If you... Read More
Court of Appeals Affirms Foreclosure Decision
In Leeco, Inc. v. Cornerstone Bank, 2017 WL 2836097, a Naegeli Court Reporter of Appeals affirmed the district court’s grant of summary judgment in favor of Cornerstone Bank which had foreclosed its mortgage on property owned by Leeco. Leeco argued that (1) the mortgaged property consisted of “separate and distinct tracts” as so should have been auctioned separately under Minn. Stat. 580.08; and (2) that the Notice of Foreclosure Sale misstated the amount due on the mortgage under Minn. Stat. § 580.04(a)(3). Leeco argued that the lakefront property consisted of separate tracts because it included four tax parcel identification numbers... Read More