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New Law Re: 401k ?

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    #1

    New Law Re: 401k ?

    I just spoke with an attorney who told me that 401K is NOT protected in a chapter 7.

    She said it's a new law beginning December.

    I live in Wisconsin.

    Does anyone know if that's true. All other attorneys have said that it's protected.
    Tags: None
    #2
    In Wisconsin, you can use either State or Federal Exemptions.

    I looked at several websites and saw that qualified retirement plan savings are protected. Under both State and Federal Exemptions.

    Even if that attny was right and the websites haven't updated State Exemptions yet, Federal Exemptions still allow for ERISA qualified retirement savings to be protected.
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    Comment

      #3
      Originally posted by leelee View Post
      I just spoke with an attorney who told me that 401K is NOT protected in a chapter 7.

      She said it's a new law beginning December.

      I live in Wisconsin.

      Does anyone know if that's true. All other attorneys have said that it's protected.
      The attorney you talked to is full of crap. Do not hire this person.

      If the law changed to eliminate protection of retirement funds in BK, it would be big big big big news.... people on this forum would have heard about it and posted it.
      Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
      Plan Confirmation 6/16/06 :yahoo:
      Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:

      Comment

        #4
        Yup Yup, should be protected, about $600 dollars was going into 2 401ks I had with 2 different companies! Could have been part of my disposable income but I upped the rates out of my paychecks before I filed!

        Good Luck, CMIYC
        July 2006: Filed Ch13 :blink:
        Oct 2006: Converted to Ch7 :clapping:
        Jan 2007: DISCHARGED :clapping:
        Nov 2007: CLOSED :yahoo::yahoo::yahoo:

        Comment

          #5
          Originally posted by aa06a47 View Post
          If the law changed to eliminate protection of retirement funds in BK, it would be big big big big news.... people on this forum would have heard about it and posted it.
          Just in case, I just did a thorough Net search - there's NOTHING mentioned anywhere about 401Ks being treated any differently in bankruptcy after this December than they are now. aa is absolutely right - do not hire this lawyer!
          I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

          06/01/06 - Filed Ch 13
          06/28/06 - 341 Meeting
          07/18/06 - Confirmation Hearing - not confirmed, 3 objections
          10/05/06 - Hearing to resolve 2 trustee objections
          01/24/07 - Judge dismisses mortgage company objection
          09/27/07 - Confirmed at last!
          06/10/11 - Trustee confirms all payments made
          08/10/11 - DISCHARGED !
          10/02/11 - CASE CLOSED
          Countdown: 60 months paid, 0 months to go

          Comment

            #6
            We filed 12/08/2006 and my 401k was protected...
            Filed: 12/08/2006
            Discharged: 03/22/2007
            Closed: 01/30/2008

            Comment

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