Bankruptcy

[Nassau]

My client has an employee in bankruptcy who is considering a hardship withdrawal.

His attorney told him his distribution would be exempt from any action taken by the Court as the funds are not considered wages. In other words, would he be required to disclose to the Bankruptcy Court his intent to take a hardship withdrawal? Would the Bankruptcy Court have a "claim or levy" on any funds disbursed from his retirement account?

One of the ABC Company's attorneys thought he would have to obtain approval from the Bankruptcy Court to request the hardship.