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11.25.24

MS&B Scores Major Win in Third Circuit Bankruptcy Case

In a challenging case at the intersection of ERISA, tax code, and bankruptcy law, MS&B’s Andrea Dobin and Michele Dudas scored a major victory in the Third Circuit.    

Their hard work safeguarded the client’s $1.7 million retirement account from a trustee's claim and clarified that ERISA’s anti-alienation provisions protect retirement accounts in bankruptcy, even if managed imperfectly or out of tax compliance. Based on plain statutory text, this interpretation reinforces that ERISA-qualified accounts are beyond creditors’ reach if anti-alienation applies.

This decision is significant for anyone with retirement savings who might encounter financial hardship. It underscores that retirement funds are fundamentally intended to support one’s future—not to be leveraged to satisfy creditor claims.

Kudos to Andrea and Michele for their hard work on this case!