Legal Question in Bankruptcy in California

If I file bankruptcy, can my 401k loan be discharged?


Asked on 2/12/10, 10:24 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

An 401(k) "loan" isn't something that can be discharged. You are borrowing from yourself, so there is no debt to discharge. If you don't repay it in the time required by law, it will be treated as a distribution and you will have to pay taxes accordingly.

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Answered on 2/24/10, 2:39 pm


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