Q. How does bankruptcy affect 403(b) loans? We have a client who just turned 55½ and at this time is not separated from service. She has a mortgage loan but also $57,000 in consumer debt, of which approximately $13,000 is from loans taken on her 403(b) accounts. If she files for bankruptcy, what happens to those 403(b) loans?
A. The bankruptcy has no impact on a 403(b) loan. The loan is not discharged in the bankruptcy, and payments can continue to be made.
09/15/2015
Recent Comments
Does the roth requirement for catch-up contributions for people who earned $145,000 apply to 457...
Hi Ed,
I really liked this article and I think you make a lot of sense. And I had no...
I believe there's a misstatement in that last quote - it should refer to governmental and...
Working with several medical providers as clients, I note that the high-end earners tend to push...
Congratulations to NTSAA for landing a good one. Nathan's breadth of experience and...