What will happen to my 401k if I file for bankruptcy? 7 Answers as of March 02, 2011

I moved my 401k into a banks retirement money market account (traditional rollover IRA) when the economy went south. It is the kind I can withdrawal on and put back within 30 days and not get penalized once a year. I am thinking of filing bankruptcy, and I have my checking account with them and I owe money on a credit card with them. Can they seize my account? Thanks.

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
If the 401k is accessible by you its accessible by trustee use your personal property exemption.
Answer Applies to: Tennessee
Replied: 3/1/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
No, they can not take money from your account if it is qualified ERISA account. IRA accounts are exempt from levy. Check and make the account qualifies.
Answer Applies to: California
Replied: 3/2/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
The 401(k) should be exempt up to $1,000,000.00.
Answer Applies to: South Dakota
Replied: 3/2/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Your 401K is exempt from bankruptcy.
Answer Applies to: Washington
Replied: 3/2/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
Traditional IRA is not exempt.
Answer Applies to: Alabama
Replied: 3/2/2011
    Cohen & Kendziorra, P.A.
    Cohen & Kendziorra, P.A. | Robert S. Cohen
    Your retirement account is exempt under bankruptcy law; however, if you owe money to a creditor and have a bank account with the same creditor, the creditor may be able to freeze your checking account for the debt owed. You should read the agreement you have with the bank when you opened your account. It is never a good idea to continue having a checking account with a creditor whose debt you will include in your bankruptcy should you decide to file.
    Answer Applies to: Florida
    Replied: 3/2/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    401K is traditionally protected under ERISA and not seen as part of the BK estate. IRAs are generally exempt up to approx. $1M. Thank you,
    Answer Applies to: California
    Replied: 3/1/2011
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