Legal Question in Bankruptcy in California
So I am at an end and need to file Bankruptcy. I have 0$ to start due to wage garnishment. I do plan on taking a loan from my 401K to pay for the proceedings to go forward with the bankruptcy. I wanted to know if that money can be taken before it gets to me? This money is to pay for the attorney for the proceedings. Please respond via e-mail
1 Answer from Attorneys
Retirement funds are exempt from levy. If you take a loan against a 401k, it is unlikely a creditor would be quick enough to levy it, unless you put it into a bank account that can or will be subject to a levy.
FYI -- Bankruptcy courts have a fee-waiver or payment plan for the $299 Chapter 7 filing fee if you qualify. Also remember that you are required to take a pre-bankruptcy credit counseling course before you file.
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