My husband needs a new furnace and, at the same time, would get central air. He knows someone who does this professionally and who will not charge him labor, so he's looking at around $4,000 in total and he'd be taking a loan from his 401(k) to pay for it. He's planning to file Ch 7 in about five months. If he goes ahead and does this now can he divide the expense by 12 and add it to his expense schedule when he files?
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CH7 Filed 2/26/2009 (no asset)
341 Meeting 4/7/2009
Discharged 7/10/2009
Closed 7/28/2009 -
Make sure that the furnace/air is a secured purchase, otherwise it won't count as an expense but rather another dischargable debt just like the credit cards, hospital bills, etc. I'm sure he'll pay it back regardless, since he is borrowing from himself and won't want to take the tax hit as well as lose that money from his retirement fund, but can't count it as an expense (if he's worried about being forced into a CH 13) if he doesn't have a clear-cut secured purchase contract I'd think.Filed CH 13 September 17, 2007
Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013! -
I didn't think that a 401(k) loan was considered a dischargable debt, or is it?CH7 Filed 2/26/2009 (no asset)
341 Meeting 4/7/2009
Discharged 7/10/2009
Closed 7/28/2009Comment
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^Can anyone else give me some insight on this topic?CH7 Filed 2/26/2009 (no asset)
341 Meeting 4/7/2009
Discharged 7/10/2009
Closed 7/28/2009Comment
Comment