Do I have to declare my 401k retirement plan as an asset in bankruptcy?

When you declare bankruptcy, you must fill out a great deal of paperwork. With a chapter 7 bankruptcy, in particular, you must fill out paperwork wherein you list your assets and property. The purpose of this paperwork in a chapter 7 is because the bankruptcy involves a seizure of assets, which can then be sold in order to repay some of your debts.

When you are listing your assets, it is important to understand the rules when it comes to bankruptcy retirement funds. Bankruptcy retirement funds, such as money in a 401K or an IRA, are generally considered to be exempt from seizure. However, they should still be listed on your list of property and assets so that you are making full disclosure. While they are listed, you will not have to turn them over to the court for sale. Other exempt assets that you do not have to turn over for sale, although you also have to list them, include some amount of home equity and any tools of the trade that you require to do business (although the rules vary by state on this issue).

When filing bankruptcy, it is important to comply with all requirements. In order to do this, it is imperative you consult with an experienced attorney for help.