Posted on: 24th Oct, 2006 11:33 am
I have a loan I pay on my 401K. I just filed chapter 7, but it won\'t affect my payback, I will still be required to pay back the loan. Will they contact my 401K administrator to let them know I filed chapter 7 even though it won\'t affect the account?
Hi,
Normally the plan administrators are sent a notice of bankruptcy filing by a participant of the 401k plan.
Normally the plan administrators are sent a notice of bankruptcy filing by a participant of the 401k plan.
even if they do contact the 401k administrator, it should not make much difference as the loan payback will not be affected by the chapter 7 bankruptcy you have filed.
Hi Guest,
The 401K account, social security income and individual retirement income are excluded from the bankruptcy estate. These are basically exemptions under the US Federal Law which means that you will not lose the money in these accounts. Therefore, your 401K administrator may or may not be contacted.
Thanks,
Sara.
The 401K account, social security income and individual retirement income are excluded from the bankruptcy estate. These are basically exemptions under the US Federal Law which means that you will not lose the money in these accounts. Therefore, your 401K administrator may or may not be contacted.
Thanks,
Sara.