Will My Real Estate Operating Company REOC Be Protected in My Personal Bankruptcy? – Ed

“Dear Lewis,

Injured in Dec 2010. I have not been able to work, nor has my wife been able to find work. I am 57 years old. In 2008 I took my 401K plan and rolled it over into a REOC C-Coporation. It is now operated as a Real Estate Operating Company, with and as a 401K Corp.

I am considering Personal Bankruptcy. If I file for personal Bankruptcy using Cahpter 7, will the corporation assets be at risk for liquidation, since it is a C corp, even though it is my retirement account, ERISA?



Dear Ed,

There is no way anyone can answer this without being able to see the documents.

I have heard of rolling an IRA into a real estate investment trust. But again, someone needs to lay eyes on the documents to confirm that it still qualifies as an IRA.

If it is still an IRA, then it is protected in bankruptcy. But if for some reason it lost its IRA status, then you may have created an asset that cannot be protected.

Please visit a bankruptcy attorney in your area. And make sure you take all the relevant documents with you to the consultation.

Good luck!

My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.

Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.

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