Protection of a 529 college savings account in bankruptcy depends on the timing of the acquisition of the account and the filing of the bankruptcy as well as how your state applies exemptions. Consult an experienced bankruptcy attorney at The Sader Law Firm to review your specific circumstances.
No parent wants to see his child’s education suffer because he’s hit a rough patch and he isn’t sure how he’s going to pay his creditors all the money he owes. Bankruptcy may be an option, but it’s understandable that you wouldn’t want to risk your children’s college savings plans so you can get out of debt. Depending on when you established your 529 plan, you may not have to take that risk. – Beverly Bird