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Roger, Attorney
Category: Bankruptcy Law
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Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I know 401K funds are protected in a Chapter 7 but what is

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I know 401K funds are protected in a Chapter 7 but what is the law regarding a loan that has been taken against these funds....can that loan itself be discharged or would it not qualify?
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.

Because 401k loans are basically loans from yourself to yourself, there is no real creditor. Thus, 401k loans are not considered to be real loans and are not affected by bankruptcy.

Thus, you would still have to pay the loan back as usual.
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