Creditor Protection

The RetireZ Plan features significant and layered creditor protection . RetireZ Plan assets are protected both by the applicable California statutes and by unique structuring that adds an additional layer of protection.

The RetireZ Plan is designed so that the assets meet the criteria of certain federal bankruptcy requirements so that the plan assets and payments to the retiree are protected even if the retiree is forced into bankruptcy.

Payments from the RetireZ Plan are exempt from collection. So long as the funds are no commingled with other assets, the assets traceable to RetireZ Plan payments will also be protected from creditors. For instance, if a retire uses their RetireZ Plan assets to purchase a house, the house will be protected from creditors in California even though California homestead law offers little protection to personal residences.

The effect of the RetireZ Plan payments is to create "creditor proof dollars" that can never be taken, and valuable assets purchased with those dollars that are completely exempt from collections.

There are two exceptions to the RetireZ Plan protections: (1) Child support obligations and (2) Divorce. As to the latter, however, if the business was separate property then the RetireZ assets should remain separate property.

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