Can you protect your 401k or your pension
in the event that you need to file for bankruptcy? Hi. I’m Eric Engel, a Dallas bankruptcy attorney
with the Engel Law Group here in the Dallas/Fort Worth metro area. The short answer to whether
or not you can protect your 401k is yes. You can protect your 401k and your pension because
it’s 100% exempt from the bankruptcy process. And this is important. I once had a client
who had about $90,000 in his 401k. And because he thought he was going to lose his 401k,
he ended up spending his 401k to try and keep himself afloat. He ended up spending all of
his 401k and then ended up owing some tax money, and then he came to see me and then
he still had to file for bankruptcy. When I told him he could have kept his 401k and
he didn’t actually have to liquidate it, you wouldn’t imagine the despair this man had
when he realized that he had made such a big mistake. Why am I telling you this? I’m telling
you this because you may be thinking I’ve got to liquidate my 401k in order to pay off
my debts in order to stave off bankruptcy. That’s absolutely the worst thing you can
do. Instead, you’ve got some questions, pick up the phone and give us a call. This is what
we do on a daily basis. I’m Eric Engel, thank you for watching my video.