Will they take my 401K?
My husband and I are considering filing Chapter 7 bankruptcy. I did our budget and expenses and we have about $71.00/month left after paying the 1&2 mortgage, car/boat loans, credit card bills and utilities. This does not taking out anything for food, gas or other misc. expense (car repairs) etc. I would like to reaffirm the mortgage, car/boat loans and only discharge the credit card loans. I have a 401K and have two outstanding loans against it. Can they take the balance of my 401K to pay off creditors? We both have good jobs but have just over extended ourselves to the point of no return. I have two college age daughters and I see no way to pay tuition for them except from my 401K, so I don't want that to be taken from me.
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It can be exempt.The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation. -
The trustee can not touch your 401K as most 401K plans are ERISA qualified.Originally posted by scarboe
jessi_cat_24Comment
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My attorney said the 401K is safe and is not considered an asset. I am also filing ch7.Comment
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