We plan on filing Chapter 7 soon. My husband hasn't retired but has only got a few months of service left. Will our retirement savings be at stake? Most of it is with a 401k account.

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401k is 100% exempt in bankruptcy. So there's nothing to worry about.

The severance might not be exempt though. I don't know which state you're from. You might be able to use the wildcard exemption to protect the severance money. Good luck!

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And there's might be around $7 or 8K as his severance as well.

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marie


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