Can I withdraw my 401k during a bankruptcy to pay off student loans that are 3 months behind?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can I withdraw my 401k during a bankruptcy to pay off student loans that are 3 months behind?

I am going to court to meet with creditors in 10 days for my bankruptcy case. Will this hurt my case in any way?

Asked on October 24, 2013 under Bankruptcy Law, Kentucky

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 10 years ago | Contributor

I would advise you not to withdraw the funds until after the meeting of creditors. Doing so would change the nature of the funds from exempt to non-exempt, and thus, unless you have room under your personal property exemption to shield the withdrawal, could render them assets of the estae.  Wait 10 days to play it safe.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption