Legal Question in Bankruptcy in New Jersey

Re: bankruptcy

Generally speaking, if you file a petition for relief under Chapter 7 of the bankruptcy code in this district, your 401k retirement plan is a fully exempt asset and thus not "reachable" or subject to liquidation by a chapter 7 trustee as an asset of your bankruptcy estate. Thus, in answer to your question, you may file for chapter 7 relief whether or not you are eligible to withdraw funds from the plan with penalty to the IRS. If we can be of further assistance, please feel free to contact us at (973) 664-1090.

Re: bankruptcy

Generally speaking, if one files a petition for relief under Chapter 7 of the bankruptcy code in this district, one's 401k retirement plan is a fully exempt asset and thus not "reachable" or subject to liquidation by a chapter 7 trustee as an asset of your bankruptcy estate. Thus, one may file for chapter 7 relief whether or not you are eligible to withdraw funds from the plan with penalty to the IRS. If we can be of further assistance, please feel free to contact us at (973) 664-1090.