r/Money•
FormerPoem1985

What are some lesser-known ways to protect your money from bankruptcy?

Recently found out that 401 (k) s have very strong bankruptcy protections. i.e., your credit card can't force you to liquidate your 401 (k) to pay down your debt.

IRAs are protected up to a certain amount.

Your home equity is protected up to ~$750K in California, and unlimited protection in Texas. So you could declare bankruptcy and walk away a millionaire, on paper.

All these asset types have exceptions, of course (nothing can protect you if you owe money to the IRS, for example).

But I wonder what other ways there are to protect yourself from your own stupidity?

Posted May 24, 2026, 2:55 AM UTC

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