401k loan is my car loan

[Rumpole]

I'm so confused...I took out a 401k loan to pay for my car. It is a direct deduction from my paycheck. Does this figure anywhere into filing bk7?

[jribe]

I'm so confused...I took out a 401k loan to pay for my car. It is a direct deduction from my paycheck. Does this figure anywhere into filing bk7?

do you mean can you use it for the means test? Or do you mean does it discharged?

But here's what i know : A 401k loan is not dischargeable in BK; and most trustees do no allow for the payment to be included on your expenses.

[Rumpole]

I want to include it as an expense. Not discharge it.

[TEW]

here's the bad news not only can you NOT use that payment as a deduction. It can be counted as disposable income.

[AngelinaCatHub]

here's the bad news not only can you NOT use that payment as a deduction. It can be counted as disposable income.

Hey, TEW, can you look that fact up, for all of us? It is her/his monies and it is a loan against their own account, and could be taxible if defaulted. But, if the OP pays the car/loan what is the problem? It does take away from the general family funds as an expense. Only the creditor is her/him.

Good question for all of us and should be a "sticky". Prove this for us please, (I'm too tired). 'Hub and Mrs. C

[TEW]

Hey, TEW, can you look that fact up, for all of us? It is her/his monies and it is a loan against their own account, and could be taxible if defaulted. But, if the OP pays the car/loan what is the problem? It does take away from the general family funds as an expense. Only the creditor is her/him.

Good question for all of us and should be a "sticky". Prove this for us please, (I'm too tired). 'Hub and Mrs. C

Sure thing Hub
http://www.thebklawyer.com/thebkblog...-calculations/
That loan is not Debt is a loan of your own money that whats so bad about them.

[HHM]

401K loans are NOT debt in a BK. Thus, you cannot claim them as an expense.

[lrprn]

Just so every one is clear - 401K loans *can* be counted as expenses if you file Ch 13 - at least in the 10th district. And the reason I'm so sure is because our case was the basis to create case law allowing it in our district