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Can you purchase a home with cash from a 401k if you are 60 and you have filed a chapter 13 bankruptcy?
Wiki User
∙ 14y ago
Probably not. There is a limit to how much you can borrow on your 401(k), and you would have to use current income to repay it, which would violate the terms of the plan.
If you withdraw all or part of your 401(k). you will pay a penalty and taxes on the amount withdrawn, so the proceeds will be less. If the amount left is enough to buy a house without taking out a mortgage, you might be able to do it, as long as your other expenses do not change significantly.
It would have to be done carefully, so consult a good bankruptcy lawyer.
Wiki User
∙ 14y ago
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When filing bankruptcy chapter 7 will they come after your 401k?
No. Never. It is exempt and protected.
If I file Bankruptcy-7, will I be able to keep my 401k/ my home/ and my cay?
Chapter 7 is a liquidation bankruptcy, you are giving up your assets. If you want to keep your home and car you would need to file a Chapter 11 Bankruptcy.
In bankruptcy can they take your 401K or IRA?
No
Is a 401K affected by bankruptcy?
No. It is protected by law.
Is it legal to borrow from 401k before chapter 7 bankruptcy is discharged?
Yes, but it is one of the absolute stupidest things financially you can do. By the end of th BK you will lose the 401k money, which is only protected while it is IN the 401k, and be left with the debt to the plan, which won't be discharged and will seize the money in the plan to be paid.
Are assets in a 401k protected if you file bankruptcy?
Yes.
Can you help a family member purchase ahome with 401k monies if your going through chapter 13 bankruptcy?
No, any money taken out of your estate would require BK approval. And the court is unlikely to approve such a request (it might be possible if your ch. 13 plan is 100% creditor payment).
401k and bankruptcy?
I believe new bankruptcy law exempts all retirement from being touch during bankruptcy so it should be safe
What happens to 401k savings after bankruptcy?
Nothing they are exempt form seizure.
What will happen to my 401k when filing bankruptcy?
These assets should not be effected at all.
Can you withdraw 401k after discharge in bankruptcy?
The MAX amount you can draw is 300k.
Will having a 401k in ga affect your chapter 7?
BK is a Federal thing...and 401k is exempt everywhere.
