Legal Question in Bankruptcy in Illinois

401k Hardship Withdrawal

I want to take a hardship

withdrawal from my current 401k to

cover expenses, and avoid

bankruptcy/judgements. My

employer allows for this type of

withdrawal, but requires a letter

from either an attorney or a credit

counseling agency indicating the

withdrawal need. Please advise!


Asked on 9/09/08, 3:49 pm

2 Answers from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: 401k Hardship Withdrawal

Is the hardship withdrawl going to be sufficient to pay off all the debts at issue? That is commendable that you want to avoid bankruptcy, but your 401k is protected if you do file bankruptcy. That is just something to keep in mind.

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Answered on 9/10/08, 5:55 pm
Motty Stone Law Offices of Motty Stone

Re: 401k Hardship Withdrawal

This sounds like a reasonable request and avoiding bankruptcy is always preferable. Please contact my office so I can ask you some more detailed questions about your situation.

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Answered on 9/09/08, 4:03 pm


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