Legal Question in Bankruptcy in Pennsylvania

401k

If you file a chapter 7 bankruptcy and you

have a 401k plan where you work, can you keep

the money you have in it or do you have to

use it to pay creditors?

Question number two if you have savings

in a bank do you have to use that to pay the

creditors? Thank you.


Asked on 7/27/99, 8:44 pm

1 Answer from Attorneys
Susan Freiman The Legal Clinic

Re: 401k

There are normally exemptions under either state or federal law which can be used to protect your property. To find out what you are allowed to keep under state law, you will have to speak to a local lawyer.

If you can't afford a lawyer, try Legal Aid. Most bar associations also have panels of lawyers willing to helpf ro a reduced fee.

Good luck!

Read more
Answered on 7/31/99, 9:19 pm


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