Bankruptcy Allows Morgan Stanley Account Freeze, 11th Cir. Says

A man’s Alabama creditors can’t force Morgan Stanley to transfer funds from his Florida retirement account to pay a judgment awarded before he filed for bankruptcy, the 11th Circuit ruled.

An individual retirement account is part of a debtor’s bankruptcy estate if they maintain an interest in it and properly assert a property exemption. A state judgment can’t end a person’s interest in the account, according to a Thursday opinion by the US Court of Appeals for the Eleventh Circuit, affirming a bankruptcy court’s decision.

Rodney Dorand, a living trust under his name, and other entities had a $1.6 million ...