Are 401 (k) accounts taken into consideration as an asset for bankruptcy
purposes? I am wondering if it would be more prudent to liquidate a 401
(k) account in order to pay creditors (and save my credit rating)
rather than file a Chapter 7 -- if the account would be depleted by the
bankruptcy anyway. Any advice would be appreciated.

Thanks

<Tourist-Trap@webtv.net> wrote in message
news:20839-40FEDFCB-150@storefull-3236.bay.webtv.net... Are 401 (k) accounts taken into consideration as an asset for bankruptcy purposes? I am wondering if it would be more prudent to liquidate a 401 (k) account in order to pay creditors (and save my credit rating) rather than file a Chapter 7 -- if the account would be depleted by the bankruptcy anyway. Any advice would be appreciated.

A 401(k) is an asset for the purposes of a bankruptcy case, but it may be
exempt from liquidation under the laws of the state in which you reside. I
suggest you consult a local bankruptcy attorney. Many give free initial
consultations.