Legal Question in Bankruptcy in Virginia

if you are filing bankruptcy, can you cash in a 401K that has only 1854.00 in it to pay the attorneys fees without penalty? if not all the fee most of it after taxes are taken out. if there is some left over, does it need to be set aside for the bankruptcy? (this is in Hampton roads, of virginia

Asked on 10/20/17, 10:49 am

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

No, there is no exception to 401k early withdrawal penalties for use to pay bankruptcy attorneys fees. And the entire 401k is exempt, so if there are other funds available, use those instead.

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Answered on 10/21/17, 5:04 am

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