Bankruptcy qualify for hardship withdrawal?

[Guest jusducki]

Rec'd new question today - participant is filing bankruptcy and requested a hardship withdrawal from her employer for overdue association fees as well as attorney fees. My gut response was that bankruptcy was not a qualifying event and if participant got an eviction notice due to late assoc. fees and/or mortgage payments, those would qualify. Employer told me she thought one's home is protected under bankruptcy. I have no experience or knowledge in this area (whew!). So - is the bottom line that the participant is unable to use the hardship provision due to non-qualifying event? Thanks in advance to anyone that responds!

[jpod]

Does the plan limit hardships only to the safe harbor circumstances listed in the regulations? If so, no "hardship" yet. Does the plan define hardship according to the general rule in the regulations (i.e., not limited to the safe harbor circumstances)? If so, this sounds like a "hardship" to me, or at least not one which any IRS agent is likely to challenge.

[401_4_ever]

I agree with Jpod. I would just add, that if you don't know what your plan document says your document drafter will tell you whether it requires only the safe harbor reasons, or whether any reason is OK. The 2nd choice is known as the "facts & circumstances basis."