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