Yes, your 401(K) is safe from bankruptcy. But it is only protected as long as it remains in your 401(K) account. Taking money out of your 401(k) or any retirement account prior to filing bankruptcy converts the funds from a protected to an unprotected asset, taking them from a retirement nest egg to money being used for daily expenses. Funds in checking accounts, savings accounts and other nonretirement investment accounts do not receive the same protections as retirement funds.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
