Employee/participant filing chapter 13 bankruptcy. Attorney sends letter saying that loan payment should be stopped immediately as they don't want to show "preferential treatment of a creditor".

The plan is protected from any bankruptcy filing as long as it is a benefit held under an ERISA plan.

Does this also mean that a loan MUST be paid back, it can not be defaulted because of a bankdruptcy filing?

This employee/participant is also continuing to contribute 6% to the plan but wants her loan payment to stop.

I'm sure some others will be by with some helpful information. In the meantime, you might want to do a search of the boards. This question has been discussed many times.

Here's what I get when I search for "loan and bankruptcy":
http://www.benefitslink.com/boards/index.p...+and+bankruptcy

Not pulling anything up. Anyone give feedback please on this issue?

Yep, link doesn't work anymore. Try going to the search page here: http://www.benefitslink.com/boards/index.p...act=Search&f=20

You can also click "search" in the upper right of the screen.

Once on the search page, enter "loan and bankruptcy" (without the quotes) in the search box and press enter (if using Internet Explorer). You should get several matches.

Once I changed the search date to look at all posts from the beginning I pulled many and I've printed the various posts. Thanks!