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 Elizabeth Prentice Your Own Question
Elizabeth Prentice
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 174
Experience:  Managing Attorney for one of the largest consumer bankruptcy firms in America.
Type Your Bankruptcy Law Question Here...
Elizabeth Prentice is online now
A new question is answered every 9 seconds

I recently resigned from my a company and need to cash out

This answer was rated:

I recently resigned from my a company and need to cash out my 401k to pay for relocation for my new job. I go to the meeting of creditors next week. Can I withdraw this money to pay for the move? This is a chapter 7 bankruptcy.

I am a bankruptcy attorney and I would be happy to assist you. If you filed a Chapter 7 bankruptcy and you claimed that your 401k was exempt, then you may do whatever you want with it after you file. The caveat is though, that if you cash it out before the 341 hearing depending there is always the potential that the trustee would find out if you have to present any bank statements or decides that an asset is not exempt. Therefore, I always recommend that a debtor wait until after the 341 hearing to find out the trustee's determination on your assets and exemptions before touching anything. Since it is only a few days away, there is no harm to wait. If the trustee doesn't make any mention of the 401k at the hearing, then withdraw it if necessary.
I hope my answer has assisted you and that you will leave me a positive rating!
Elizabeth Prentice and other Bankruptcy Law Specialists are ready to help you