In a decision that has split districts, an appeals court ruled that creditors might attach the proceeds of an inherited IRA.  This controversial ruling means that while most IRA accounts are protected under bankruptcy from creditors, inherited IRA accounts will not be covered by the same exemption.  Therefore, creditors may seek payment from the proceeds of an inherited IRA.  It may take an appeal to the US Supreme Court to make a final decision because of the contradictory decisions by lower courts.

For more read, “In circuit split, court says inherited IRA fair game in bankruptcy.”