401k loan

[veggirl]

I am currently paying back a 401k loan that i took out in the fall; they are taking about 50$ per paycheck for it. Does this mean my emloyer will be notified about chapter 7? thanks

[zpbk13]

I don't see how or why. Maybe someone with more experience can confirm. I have two 401 loans that come out of my paycheck about $60 every two weeks and my attorney never mentioned that employer would be notified of our chapter 7. Now a 13 of course would be a different matter because in my state they will only allow payments to be taken from your paycheck and the HR department would be involved. I hope this helps!

[AngelinaCatHub]

Unless you list them as a debt, they probably won't know. If you keep paying them, they won't care. It is to your advantage to pay that one as this time, it is not nonchargeable and there is a 10% penalty as well as regular taxes on the full amount. Also remember, it is your future income you will be cheating yourself from and is protected from seizure. 'Hub

[slam22]

They may or may not find out depending on who administers your 401K, however you must list it as a debt in the BK. You can't pick and choose which debts to list. I felt a little uncomfortable about listing mine but as it turned out it was a non issue.

[pa308]

Your payroll is taking it right out of your paycheck. They wont be affected by your bk.

[jribe]

401k loans are not dischargeable in BK- you don't need to list your Employer as a creditor. You're paying back yourself...