Florida state and federal guidelines regarding bankruptcy filing do change from time to time and some policies are written in a way that allows for variations in interpretation and implementation. As a result, issues can arise over how bankruptcy law is understood and applied in some cases. Now that one individual bankruptcy case has resulted in several contradictory rulings in lower courts, the U. S. Supreme Court will decide how inherited retirement funds should be handled in bankruptcy proceedings.
One specific section of the bankruptcy code mandates that retirement funds may be exempt in bankruptcy filings if they are considered nontaxable. But because the guideline does not specify whether or not the un-taxable funds must be identified as the property of the bankruptcy petitioner in order to be protected, there is room for interpretation and controversy in applying the policy in real cases.