Legal Question in Bankruptcy in New York

Re: To what extent are the assests of a 401K

This is an excellent question. The answer is different depending on where you live. New York State residents are exempt from the federal exemptions, and are able to take advantage of the more generous 'NY Debtor/Creditor Law'.

The 401K and the insurance are a part of the bankruptcy estate, but can take full advantage of the NY State exemptions (20K).

But the situation is better than that. Depending on the size of your assets in that form and the 'energy' of the trustee, they may move from the bankruptcy estate back into your portfolio without being touched. This happens frequently.

You are welcome to a consultation for no fee at my offices at 42 West 44th Street, New York, NY. Please call for an appointment first; (646)- 591-5786

Re: To what extent are the assests of a 401K

Qualifying 401K and Pensions are fully exempt in Bankruptcy, in New York, meaning that you can keep them all. But don't make large deposits before bankruptcy, which might become a substantial abuse of the Bankruptcy process, which could result in your denial of discharge.

Cash Value life insurance policies are very complicated, depending upon who the beneficiary is and, other factors. Suffice it to say that you are safe in New York if you have less than $2,500 in cash and it's equivalents.

These bankruptcy issues can be very complicated, and therefore you should not consider doing a bankruptcy without the benefit of an attorney who will protect your assets and help you in obtaining the bankruptcy discharge.

Feel free to call me if you have further questions.

Jacob Silver, Attorney At Law

(718) 855-3834

http://www.silverbankruptcy.com

[email protected]