Pay less rent means bigger court payment?

[konked]

Am now paying 100% and have to move to create more cash flow. I want to loan myself money from 401K for move expenses and legal bill. Lawyer says if I pay less rent, the court will want more dough...and they'll never let me take money from 401 because I will have to pay myself back. Once I hit 100% payback, they dropped all objections so I figured they would not care...??

If I move will they take the extra money and shorten my duration? and how would they know? How would they know if I loaned myself 401 money, and would I be in BIG trouble if I just went ahead without asking?

[justbroke]

Once I hit 100% payback, they dropped all objections so I figured they would not care...??

If you're in a 100% plan, there's usually no objection to anything, if you're actually still paying 100% into the plan. The reason why they'd object to a 401(k) loan is that you would be taking money away from unsecured creditors who are/were getting 100%. If the loan caused you to pay back 70%, there would surely be kicking and screaming... and that's just the Trustee!

If I move will they take the extra money and shorten my duration? and how would they know?

That's up to you and your attorney to factor that info your plan modification. If your DMI is enough that it pays back all unsecured creditors in 24 months, rather than 36 or 60, at 100%... then your plan would be 24 months.

How would they know if I loaned myself 401 money, and would I be in BIG trouble if I just went ahead without asking?

You need stick to the advice of your attorney. I don't think you can do this in most Districts, because it would reduce your Disposable Monthly Income (DMI). I suppose you're still making contributions (to your 401(k)) too?

[konked]

Thank you Justbroke. Any loan I would take would not affect my paying 100%. The results of moving would increase my DMI because rent expense and gasoline expense would be less. My judge is stern and I don't think my lawyer wants to ask. Thanks much!