My Employer Filed Bankruptcy, What Will Happen To My Retirement Savings?

Unemployed - Can Bankruptcy Help?

If your employer files for bankruptcy your retirement plan could be at risk.  Here’s what you need to know:

  1. If your employer files Chapter 7 bankruptcy, which is a total liquidation, your pension plan will be automatically terminated.
  2. Pension plans which are terminated in Chapter 7 bankruptcy are insured by the Pension Benefit Guaranty Corporation; but 401k plans are not insured.
  3. If your employer files Chapter 11 bankruptcy, the retirement plans will most likely be affected by their restructuring efforts. Both retirees and employees usually retain counsel to represent their interests during the bankruptcy.

How To Protect Yourself

  1. Find out if your pension plan has been terminated.
  2. Find out who the pension plan administrator is during the bankruptcy.
  3. File a claim with the bankruptcy court. You may want to consult with an attorney to do this.
  1. Contact Employee Benefit Security Administration, EBSA at www.askebsa.dol.gov or 1-866-444-EBSA (3272) to get help.
By | 2017-12-13T01:47:25+00:00 November 2nd, 2009|Chapter 11 Bankruptcy, Retirement|Comments Off on My Employer Filed Bankruptcy, What Will Happen To My Retirement Savings?