Can I keep my 401(k) if I file for bankruptcy? Yes.

April 12, 2013

When you file for bankruptcy you are given exemptions that you may use to protect your property. Some exemptions are limited, such as those used to protect your automobile and household goods, and some are unlimited, such as the exemptions you receive to protect any qualified retirement.

401(k)’s, 403(b)’s, pensions and the vast majority of IRA’s are considered to be qualified retirement plans.

For this reason, it does not make sense to take a loan from your retirement plan if you believe a bankruptcy filing is inevitable. Instead, give my office a call so that we may assist you with planning your financial recovery.