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Is my 401(k) protected in a Bankruptcy?

Qualified retirement accounts, including 401(k)'s, are generally protected in a personal bankruptcy case. This means that protected retirements accounts remain your property during and after a bankruptcy case. At the Law Offices of Scott W. Spradley, P.A., I personally review your retirement accounts with you so that I can properly advise you as to whether your accounts are protected and will remain yours in the event a bankruptcy is filed.

Since the Bankruptcy Code allows you to retain certain retirement accounts, it is usually a bad idea for you to make withdrawals from your 401(k) to pay off credit card debt. This is because if your financial circumstances suggest you should file a bankruptcy case, the credit card debt will usually be discharged in its entirety. Paying down the balances of credit cards with retirement funds that will be exempt in a bankruptcy case is arguably the equivalent of throwing your money away. So, before you make a withdrawal from your IRA or other qualified retirement account to pay down or pay off a credit card or other debt, schedule an appointment with me at the Law Offices of Scott W. Spradley, P.A. for a free consultation.


The Law Offices of Scott W. Spradley, P.A. is committed to answering your questions about Personal Bankruptcy, Business Bankruptcy, General Litigation and Wills law issues in Florida.

I offer a free consultation and I’ll gladly discuss your case with you at your convenience. Contact me today to schedule an appointment.

Law Offices Of Scott W. Spradley, P.A.
301 South Central Avenue, P.O. Box 1
Flagler Beach, FL 32136