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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2876
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Am i allowed to make a loan from my 401k while in Bankruptsy? If yes, how much can i loan?

Customer Question

Am i allowed to make a loan from my 401k while in Bankruptsy? If yes, how much can i loan?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

one moment while I review your question

Terry L. :

you should not take a 401k loan during the case if you are in chapter 13

Terry L. :

You would need court approval

Terry L. :

If this is chapter 7, your case is just 90 days long.

JACUSTOMER-3h6fso9g- :

okay thank you

Terry L. :

You would still need approval, so easier to wait until the case is done

JACUSTOMER-3h6fso9g- :

even if there's a family emergency?

Terry L. :

You would still need approval from the court to incur debt during the case.

Terry L. :

even in a family emergency

JACUSTOMER-3h6fso9g- :

thank you very much sir

Terry L. :

Let me know if you have any other questions.

Terry L. :

Thanks

Terry L. :

good luck