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Your wife got a new job and you wanted to cash out her 401k but it's less than 6 months after your bankruptcy. Can they take this money?
Wiki User
∙ 15y ago
It's possible. Of course you understand that you'll have to pay taxes and an earlynwithdrawal penalty that will eat up 40-50% of it, don't you? And the BK was because you didn't appreciate how to live within your means...what you have as income...and only because it is so important to have savings for the future were you allowed to keep the 401....and now, debt free, with a new income and all, you want to use it?
Wiki User
∙ 15y ago
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Can you take money out of your 401k after you file bankruptcy?
Yes, but not until your discharge. If you take money out of a 401K after you file and before discharge, the money is no longer exempt and could be taken by the Trustee. If you take it out after your discharge the money is yours.
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.
401k and bankruptcy?
I believe new bankruptcy law exempts all retirement from being touch during bankruptcy so it should be safe
What will happen to my 401k when filing bankruptcy?
These assets should not be effected at all.
What happens to 401k savings after bankruptcy?
Nothing they are exempt form seizure.
Can you withdraw 401k after discharge in bankruptcy?
The MAX amount you can draw is 300k.
IS a 401K distribution income in bankruptcy?
Money taken from your 401 into your personal account is considered income/asset. That's why its never a good idea to remove money from your 401 when youre about to file BK.
Can you lose a 401k?
Yes, You can lose Money in a 401k
When filing bankruptcy chapter 7 will they come after your 401k?
No. Never. It is exempt and protected.
