Will My Bankruptcy Affect My Child's 529 College Saving Plan?

Written by Jonathan Petts. Legally reviewed by Ben Jackson
Updated January 30, 2025

Whether the funds in your child's 529 plan are protected when you file bankruptcy depends on how long ago you deposited the funds in the account.

• If you deposited the funds more than two years before your bankruptcy, the funds are protected.

• If you deposited the funds 1-2 years before you filed bankruptcy, they're partially protected. The first $6,425 of these funds are protected, but anything above that amount isn't protected.

• If you deposited funds less than one year before you filed bankruptcy, they aren't protected.

For any unprotected funds listed above, you may still be able to keep some or all of them if your state provides an exemption that you can use to protect them.

Do I Need To List My Child's 529 Savings Account Even Though I'm Just the Signer?

When it comes to 529 plans, there are account owners and account beneficiaries. If you set up the 529 plan for your child, you're the owner and your child is the beneficiary. Unless someone other than you set up the account and is the account's owner, you have to list your child's 529 plan on your bankruptcy forms. 

Written By:

Jonathan Petts

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Jonathan Petts has over 10 years of experience in bankruptcy and is co-founder and CEO of Upsolve. Attorney Petts has an LLM in Bankruptcy from St. John's University, clerked for two federal bankruptcy judges, and worked at two top New York City law firms specializing in bankrupt... read more about Jonathan Petts

Ben Jackson

Ben Jackson co-founded Upsolve after his own experience navigating $60,000 of crippling debt and finding freedom through bankruptcy. That journey opened his eyes to how inaccessible and confusing the bankruptcy process was for millions of Americans who needed a fresh start. Motiv... read more about Ben Jackson

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