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 Roger Your Own Question
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31789
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Bankruptcy Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I know 401K funds are protected in a Chapter 7 but what is

This answer was rated:

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.
Roger and other Bankruptcy Law Specialists are ready to help you