Question: If I file for bankruptcy, do I have to give up my 401k?

One of the few answers that I can give that is relatively absolute is that a 401k is exempt in a bankruptcy case.  This means that unless there is some type fraud, your 401k is safe from the reaches of a Trustee in Bankruptcy, creditors or almost everyone with a possible exception of taxes owed the IRS.

You need to see an attorney who can advise you about your particular situation.  Nothing can be for certain unless a competent attorney reviews your entire situation including all assets, creditors and a determination is made of who may have a lien on your property.

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
This entry was posted in Chapter 11, Chapter 13 Bankruptcy, Chapter 13 Bankruptcy Plan, Chapter 7, Creditor Seizing of Assets, EXEMPTIONS. Bookmark the permalink.

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