When you yourself have filed for bankruptcy, when it’s possible to just just take down a laon from your own 401k your your retirement investment is dependent upon whether you filed for Chapter 7 or Chapter 13 bankruptcy.
For those who have filed for bankruptcy, when you can just simply take away a laon from your own 401k retirement fund depends upon whether you filed for Chapter 7 or Chapter 13 bankruptcy. Keep reading for more information about whether you are able to remove a 401k loan after bankruptcy.
To learn more about what goes on after bankruptcy, see speedy cash our Life After Bankruptcy subject area.
Chapter 7 Bankruptcy
In the event that you filed for Chapter 7 bankruptcy, it is possible to theoretically sign up for a 401k loan when after filing your situation. ERISA qualified plans that are 401k not considered home associated with bankruptcy property. Which means the Chapter 7 bankruptcy trustee can’t go after that cash to cover your financial situation.
Nevertheless, the income is just safe you filed your case if it is in your 401k account when. Unless it is exempt if you take out a 401k loan prior to filing for bankruptcy and put that money in the bank or use it to buy another asset (such as a car), the trustee can take it.