Chapter 7

[bill07407]

Can 401(k) or 401(k) rollover accounts be touched in Chapter 7 bankruptcy. Also, how much debt does one need for Chapter 7? Thanks

[Eagle]

Have you taken any loans from the 401(k)?

[stan03]

When congress passed the new bankruptcy law in 2005, they created a broad exemption for all types of tax exempt retirement accounts including 401(k) accounts. This expemtion is unlimited - no matter how much money is in the account. Therefore, a 401(k) won't be touched in a chaper 7 bankruptcy.

[bill07407]

I am no longer at the ompany and am currently unemployed. Also, how long should I let pass since I las used my credit cards? Thanks

[stan03]

You should wait as long as possible between the last use of a credit card and filing of a Bankruptcy petition. It would probably be considered fraud if you used a credit card knowing that you are going to attempt to discharge the debt in an upcoming Bankruptcy - if a credit card company suspected fraud I believe they can object to the Bankruptcy. This can cause more headaches than it is worth. Oh, and after the petition if filed absolutely do not use the credit card.