Due to the recent COVID-19 pandemic, many businesses throughout the United States have gone under. This is an unfortunate reality that many business owners throughout the country, and especially in New York, have had to come to terms with. That being said, if you are a business owner, your business is more than your pride and joy; it is your livelihood. If you recently had to file for bankruptcy, you most likely have many concerns regarding your future and that of your family. One question that many business owners ask is whether their 401(k) is safe, even after filing for bankruptcy.
Fortunately, our firm is here to tell you that your 401(k) isn’t going anywhere, even if you recently filed for bankruptcy. 401(k) plans are governed by the Employee Retirement Income Security Act. Under ERISA, 401(k) assets are held apart from a company’s assets in a trust account, meaning those funds cannot be used to cover the cost of business operations, and they are also are not accessible by creditors.
If you have any additional questions, or you are a business owner who believes the time has come to file for bankruptcy, please do not hesitate to speak with our experienced Rockland County bankruptcy attorney today to explore your options and learn more about how our firm can help you through every step of the process ahead.
Contact our experienced New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represents clients facing Bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.