...liquidated? 401K? I also have another mortgage on my credit report for an inv. prop. that is being held in an LLC. Can they force me to sell that home even though it has very little equity and is in the LLC?
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...liquidated? 401K? I also have another mortgage on my credit report for an inv. prop. that is being held in an LLC. Can they force me to sell that home even though it has very little equity and is in the LLC?
An IRA is protected from creditors, which is why it cannot be used as collateral for a loan. A 401(k) is also protected. The reason you can borrow from that (for limited purposes) is because your employer has you by the purse strings. If you leave that employer or are terminated, a 401(k) loan would be immediately due, and if not paid would be considered a distribution (subject to tax and 10% penalty if under age 59.5).
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