If I file for Bankruptcy in Florida can I wipe out/discharge my Outstanding 401k Loans?

Some of my clients have recently asked me if they can include their 401k loans into the bankruptcy. Typically clients dip into their 401k as a last resort, in an attempt to pay off debts they owe, but they fail to realize the consequences of doing so. Unfortunately the filing of a bankruptcy, whether chapter 7 or chapter 13, in Florida will have no affect on your 401k loan and you will still be required to pay for them.

If you are thinking of filing for bankruptcy in South Florida and would like to schedule a free consultation with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559. We offer free consultation in any of our office locations including Boca Raton, Fort Lauderdale, Miami, Plantation, and Sunrise Florida.

 

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