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If you were told by your attorney that your 401k was protected and exempt from bankruptcy and you borrowed on it to try and save your home now you are faced with paying taxes on it. can we sue?
Precious1
Precious...you saw my last answer I should think....better read it again.
What he told you is correct...and your 401k is still there and safe from BK.....if he told you it was OK to borrow against it and that the borrowed money would be safe from BK just like the 401k is ...that would be wrong and you may want to take action against him.....
If you thought touching the 401k (as in borrowing against it) was the same as keeping it protected and safe...it's just your fault for not understanding what your doing.
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∙ 16y ago
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When filing bankruptcy chapter 7 will they come after your 401k?
No. Never. It is exempt and protected.
Is earned income tax exempt from bankruptcy in Ohio?
All money is income in bankruptcy. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.
If you get a small amount of life insurance but need it for funeral expenses will it hurt your chances of discharging a Chapter 7?
Most life insurance benefits are exempt from bankruptcy. Contact the trustee or the attorney who handled the bankruptcy to find out what applies in this situation.
Are the stimulus checks exempt from the bankruptcy courts?
No...
Is it possible to exempt a tax refund in chapter 7 bankruptcy?
You can't "exempt" anything.
Is a living trust EXEMPT FROM BANKRUPTCY?
Sometimes, parts of a living trust can be exempt from bankruptcy such as exemptions for a homestead, but even that isn't always the case. How a living trust is treated in a bankruptcy varies depending on how the laws of the state treat this type of trust as a whole. Typically though, living trusts are not fully exempt from bankruptcy.
Section 522b of the US bankruptcy code Need to know if 401K is exempt of a petition of bankruptcy 7?
Generally, but the extent to which funds will be exempt depends on your jurisdiction. Check your local state bankruptcy exemptions.
Can you close out your 401K before discharge of your chapter 7?
Not a good idea, unless you have a very small amount left in it. The penalty (10%) and income taxes will have to be paid, and if it is a large amount, it will become an asset of the bankruptcy estate and the trustee will take it. It is exempt in the 401(k), but not in your pocket or bank account. You could probably amend your petition documents to exempt the amount if you have exemptions available, but you should discuss it with your attorney or get a bankruptcy attorney in your area to review this.
Is there a bankruptcy estate if every asset is exempt?
Yes
If ss disability payments are exempt from a bankruptcy why would your disposable income change if the only added income was from the ss?
Is VA Disability income exempt from bankruptcy income claim?
Can you file bakrupcy on a civil judgment?
No, they are exempt from the bankruptcy laws.
Are annuities exempt in chapter 7 bankruptcy in Florida?
yes
