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Section 522b of the US bankruptcy code Need to know if 401K is exempt of a petition of bankruptcy 7?
Wiki User
∙ 10y ago
Generally, but the extent to which funds will be exempt depends on your jurisdiction. Check your local state bankruptcy exemptions.
Wiki User
∙ 10y ago
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What happens to 401k savings after bankruptcy?
Nothing they are exempt form seizure.
When filing bankruptcy chapter 7 will they come after your 401k?
No. Never. It is exempt and protected.
Can you keep your 401k if you file for bankruptcy?
Absolutely...it is always exempt from seizure or use and will NOT be taken.
Can you re-ammortize your 401k loan payroll deduction payments if you are filing bankruptcy?
What are you possibly trying to say? (Your 401k is exempt from seizure and process in BK you know).
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.
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.
Can i withdrawl my 401k while in chapter 13 bankruptcy in Louisiana?
Bankruptcy is a federal procedure in a federal court. What state you are in is irrelevant except for exemptions. Your 401(k) balance is exempt by federal law, but once you withdraw money from it, that money is no longer exempt, and the trustee will want it to be applied to your plan. If you withdraw it and fail to disclose that to the trustee, you may find your bankruptcy in serious trouble. Don't do it.
In bankruptcy can they take your 401K or IRA?
No
Is a 401K affected by bankruptcy?
No. It is protected by law.
Will having a 401k in ga affect your chapter 7?
BK is a Federal thing...and 401k is exempt everywhere.
Does chapter 7 affect 401k?
No...you must disclose it but it will be exempt.
Can 401k loans go on a bankruptcy?
Yes, they must. All debts and ALL assets must be included. No exceptions. Your 401 is classified as an exempt asset by the court. However the loan isn't, and when it is discharged by the court, you will lose your 401k against it, and probably have substantial tax consequences. You need an attorney.
