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Does filing bankruptcy put any possible future ESOP or existing 401k plans in jeopardy?

April 26, 2017Bankruptcy ESOP existing filing future jeopardy plans possible

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Does filing bankruptcy put any possible future ESOP or existing 401k plans in jeopardy?

1 Answer

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Filing for bankruptcy does not affect your future right to invest in a retirement account. For those with a current 401k, the consumer will keep the 401k because the Supreme Court has ruled that 401k plans are not property of the bankruptcy estate. Therefore, a consumer can discharge debt and keep their 401k.