When you have worked for so many years to build up your retirement savings, the last thing you want is for creditors to come after your 401(k) account if you file for bankruptcy. .
Fortunately, whether you file a Chapter 7 or Chapter 13 bankruptcy case, your 401(k) account is considered to be a protected asset under both state and federal law. Creditors may go after the funds you have in checking and savings accounts, as well as in traditional brokerage accounts, but they are not allowed to touch your 401(k). This makes a 401(k) one of the safest types of investment avenues there is, as it will stay intact even after filing for bankruptcy.
Therefore, you should resist the urge to withdraw from your 401(k) to help you pay off your debts. Your retirement plan is protected, but as soon as you take money out of it, that cash is up for grabs.
For assistance with all aspects of the bankruptcy process, speak with a skilled Georgia attorney at Jeff Field & Associates by calling 404-381-1278 or by contacting us online.
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