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    pavery58's Avatar
    pavery58 Posts: 1, Reputation: 1
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    #1

    Apr 1, 2012, 03:36 AM
    Taking a loan on 401k when in bankruptcy
    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's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

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