My question involves bankruptcy in the state of: illinois. What happens to my 401k balance if I file for personal bankruptcy? Thanks.
My question involves bankruptcy in the state of: illinois. What happens to my 401k balance if I file for personal bankruptcy? Thanks.
Section 401(k) plans are generally exempt property in bankruptcy. That means that the plans cannot be taken by the bankruptcy trustee to pay your creditors in the bankruptcy. I suggest you discuss with your bankruptcy attorney (and it is a very good idea to use an attorney for your bankruptcy) how the particular accounts that you have might be affected by your bankruptcy as the details do matter.