Legal Question in Bankruptcy in Utah

Can I kkep My 401K

Hello, My wife and I are deep in dept and need to file bankruptcy. the problem is I cannnot lose my 401K or my vehicles what chapter would be best for me?

Thanks


Asked on 5/04/01, 1:14 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Can I kkep My 401K

Generally 401k accounts are exempt in bankruptcy. You can also keep your vehicles if you do not have a lot of equity in them and if they are necessary for you.

There are two types of bankruptcy, Chapter 7 is liquidation where you file and your unsecured debts are discharged along with any other debts where you surrender the property. Chapter 13 requires a plan where you pay your creditors a certain percent of the debts over 36-60 months. Ch 13 is very flexible to retain assets if you make the payments. In order to decide you need to get together all of your debts and your budget. Then review your budget to see if there is avaible cash to pay your creditors if you discount the amount of debt. Some Ch13 plans only pay 10% to unsecured creditors (credit cards, medical, etc.)

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Answered on 6/19/01, 1:06 pm


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