Are IRA's garnished during a bankruptcy? If filed due to the defendants inability to pay settlement cost ?

Answer 1

JD is right, except an IRA, unlike a qualified pension or profit-sharing plan, is not the type of retirement plan that enjoys exemption in bankruptcy. There may be an inquiry to determine whether the IRA is necessary to the debtor at this time, but that is a state law exemption, not a federal exemption as in the case of a qualified pension plan. The reason is that an individual can call his bank and demand his IRA, not with a qualified pension account though.

Answer 2

Typically retirement funds are protected from bankruptcy.