401K Withdraw

[possumfat]

credit card debt belongs to wife.............like the idea of borrowing agaisn't the 401K instead of a withdrawal.

[aa06a47]

credit card debt belongs to wife.............like the idea of borrowing agaisn't the 401K instead of a withdrawal.

Can you wife file BK as well? A 401k loan is another option, but if she would qualify for a chapter 7, I wouldn't do the 401k loan.

[NASCAR20FAN]

Can you wife file BK as well? A 401k loan is another option, but if she would qualify for a chapter 7, I wouldn't do the 401k loan.

I would not advise a 401k loan... a loan on a 401k only means you get cash upfront, and the interest is not credited to your 401k. It is pointless.

[SinkingFast]

I would not advise a 401k loan... a loan on a 401k only means you get cash upfront, and the interest is not credited to your 401k. It is pointless.

You do repay yourself a certain %'age of interest on the loan, but the gain isn't as much as you could get with the money remaining invested in the 401K.

Possum,.........

JMHO here, but I would not tap the 401K to pay off a CC.

What if you have a medical emergency or need a major repair done ASAP on your home, or, or, or,....... Where you might need access to those funds for something bigger than paying off a CC??

You gotta keep in mind major rainy days where you might really need that safety net. Not to mention your "Golden Years" when Soc Sec might only pay out at 75% or less of what's currently predicted.

[Minnymouth]

Since you are discharged but not closed....... the battle is between the Trustee and the creditor that you made preferencial payment too....... The Trustee will take the creditor to court to get the money.....

DO NOT 'ROCK THE BOAT"........... you have been discharged, the problem now belongs to the Trustee......

DO NOT USE YOUR 401K to withdraw money to pay a creditor off that has been discharged......... or previously paid in full by you.............

BE PATIENT................ all you need to do is wait for your closing......

BASICALLY YOUR BANKRUPTCY IS OVER................... IF YOU ARE DISCHARGED..........

Do not get into the battle between the creditor and the Trustee........!!!!!!

[NASCAR20FAN]

You do repay yourself a certain %'age of interest on the loan, but the gain isn't as much as you could get with the money remaining invested in the 401K.

Possum,.........

JMHO here, but I would not tap the 401K to pay off a CC.

What if you have a medical emergency or need a major repair done ASAP on your home, or, or, or,....... Where you might need access to those funds for something bigger than paying off a CC??

You gotta keep in mind major rainy days where you might really need that safety net. Not to mention your "Golden Years" when Soc Sec might only pay out at 75% or less of what's currently predicted.

It depends on the plan... All that I have put into give you 0% [interest] back. I 100% agree with you to pay off CC not a good idea. Like I said in my OP the best thing to do is to just reduce the amount going in and pay off those bills post tax...

[possumfat]

minny, the preferential payment the trustee is after was made on spouses credit card............if he got some of it wouldn't they come back to her for the amount the trustee got ?

[CindyLou]

Keep in mind that your 401K is only protected if it remains a 401K. If you cash out within 6 months of discharge it could become non-exempt. But this is only if the trustee finds out. I say do what you have to do, but only if its the last resort. I agree with previous posts that suggest doing a BK for your wife. Even if its a 13! Isn't the goal a fresh start? Good luck.