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View Full Version : Taking a loan on 401k when in bankruptcy


pavery58
Apr 1, 2012, 03:36 AM
My husband and I are going trough a bankruptcy chapter 13 what happens if one us would take out a loan on our 401k before the bankruptcy is complete? Is that money exempt in paying back creditors? Residence is in the state of Florida

Fr_Chuck
Apr 1, 2012, 06:32 AM
That would be up to the bankruptcy trustee, whose permission would be needed to take out the loan.