12/22/2025
Your 401(k) is considered a protected asset and not subject to Chapter 7 or Chapter 13 bankruptcy. If you have an outstanding 401(k) loan, it is not dischargeable in bankruptcy, meaning that you will still have to repay the loan. Note that the money you use to repay the 401(k) loan is not considered part of your disposable income in a Chapter 13 bankruptcy. Filing for Chapter 13 bankruptcy - involving the repayment of your debts over several years through bankruptcy court - may also mean that you can't make regular contributions to the 401(k) during the bankruptcy period. A bankruptcy attorney can answer specific questions about your situation.