How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

question will taking out a 401k loan during a bankruptcy in

Customer Question

question will taking out a 401k loan during a bankruptcy in georgia hurt me?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  ANDREA replied 6 years ago.
Hi, Welcome to JustAnswer

My name is XXXXX XXXXX I would be glad to help you

ANSWER

Bankruptcy proceedings do not touch 401ks, or any other retirement or pension funds. If, however, you take out a 401k loan, you will be heavily taxed for partial early withdrawal of funds since the theory behind these funds is that they remain untouched and intact for your retirement years,


 

 

BONUS and POSITIVE FEEDBACK are appreciated
Customer: replied 6 years ago.
I don't mean to be rude but I googled your answer before I sent my question what I'm asking is I'm going thru a bankruptcy right now, I wanted to know if I took a loan against my 401k in the middle of my case would they be able to take it from me? I plan on having it deposited into my account. I had to give my bank account, 401k & other financial info for the bankruptcy
Expert:  ANDREA replied 6 years ago.
If you put the money in your checking account, it would be considered by the Bankruptcy Court as money available for the creditors you listed in your Bankruptcy proceedings.


 

 

BONUS and POSITIVE FEEDBACK are appreciated
Customer: replied 6 years ago.

Ultimately I'm worried about my case being dismissed due to taking out a loan I found my answer here....

 

http://www.thebklawyer.com/thebkblog/2010/10/03/the-problem-with-401k-loans-and-consumer-bankruptcy/

Expert:  cfortunato replied 6 years ago.
Great! If there is any additional information that you need, please let us know.