TEW,
Every case is different. Everyone has different numbers when it comes to income and expenses, median and means. As I explained in the other thread, in my case, the CPAs working for the UST said, in my Chapter 7, my income and the money I was using to pay my 401k loan back could pay my creditors 100%. My only out is if my employer says it is MANDATORY that I pay my 401K back IF I am receiving a paycheck (i.e., if I earn a paycheck, do I have to make my 401k loan payment back to the 401K plan in full per the payment terms that were set up by the employer when I took out the loan). Key: Mandatory, if employed, per employer's payment setup. If it is not mandatory to pay back the loan as a condition of my employment, either I have to have chapter 7 dismissed or converted to 13. If the terms of the payment were set up by me rather than employer, same thing. If I could pay partial payments rather than entire thing, same thing. If I could pay via any other means than payroll deduction, same thing. If I could default for any reason, hardship included, same thing. So, my option (not knowing what my employer allows), at this point, is have UST dismiss or convert to 13. I am in process of determining my employment options. That said, my attorney should have advised all of this prior to filing and certainly prior to 341. So, if it is dismissed, I'm screwed for a variety of reasons. If it is converted to 13, I'm may be screwed. In a 13, you are only allowed to repay your 401k loan back in the same percentage that you pay your creditors. Of course the UST is overseeing as it was a conversion. Say I can only afford to repay my creditors 30% based on the fact that my tax structure at the time of filing is different than it is now, I can only repay my 401k back 30%. I was informed that the trustee had to make the payments, i.e., the administration fee comes into play, i.e., it is not out of payroll deduction, i.e., it is not full repayment to the 401k, all of which may be grounds for defaulting on the 401k which would mean that I would be canned because it may be mandatory to repay the 401k. What I have learned is that it is in my better interests for Chapter 7 purposes that the loan repayment be 100% mandatory if employed, but that if it is Chapter 13 it is better that the loan not be mandatory, not be 100% repayment, not be under payroll deduction. I know there is a lot to this, and I know that I am not explaining it very well. My only point in bringing this up was to inform andysmom to get the best legal advice she can so she is not surprised if and when this comes up. At no point did I tell her that she couldn't file Chapter 7 or Chapter 13. I told her my situation and explained that it, in my opinion, was imperative she get the best attorney she could find that was versed in these high dollar 401k loan repayments. I am sorry that she is misunderstanding me. All I was trying to do was help. So, I guess I will butt out now. I'll keep her in my prayers as I try to get through my own BK situation the best way possible.
Every case is different. Everyone has different numbers when it comes to income and expenses, median and means. As I explained in the other thread, in my case, the CPAs working for the UST said, in my Chapter 7, my income and the money I was using to pay my 401k loan back could pay my creditors 100%. My only out is if my employer says it is MANDATORY that I pay my 401K back IF I am receiving a paycheck (i.e., if I earn a paycheck, do I have to make my 401k loan payment back to the 401K plan in full per the payment terms that were set up by the employer when I took out the loan). Key: Mandatory, if employed, per employer's payment setup. If it is not mandatory to pay back the loan as a condition of my employment, either I have to have chapter 7 dismissed or converted to 13. If the terms of the payment were set up by me rather than employer, same thing. If I could pay partial payments rather than entire thing, same thing. If I could pay via any other means than payroll deduction, same thing. If I could default for any reason, hardship included, same thing. So, my option (not knowing what my employer allows), at this point, is have UST dismiss or convert to 13. I am in process of determining my employment options. That said, my attorney should have advised all of this prior to filing and certainly prior to 341. So, if it is dismissed, I'm screwed for a variety of reasons. If it is converted to 13, I'm may be screwed. In a 13, you are only allowed to repay your 401k loan back in the same percentage that you pay your creditors. Of course the UST is overseeing as it was a conversion. Say I can only afford to repay my creditors 30% based on the fact that my tax structure at the time of filing is different than it is now, I can only repay my 401k back 30%. I was informed that the trustee had to make the payments, i.e., the administration fee comes into play, i.e., it is not out of payroll deduction, i.e., it is not full repayment to the 401k, all of which may be grounds for defaulting on the 401k which would mean that I would be canned because it may be mandatory to repay the 401k. What I have learned is that it is in my better interests for Chapter 7 purposes that the loan repayment be 100% mandatory if employed, but that if it is Chapter 13 it is better that the loan not be mandatory, not be 100% repayment, not be under payroll deduction. I know there is a lot to this, and I know that I am not explaining it very well. My only point in bringing this up was to inform andysmom to get the best legal advice she can so she is not surprised if and when this comes up. At no point did I tell her that she couldn't file Chapter 7 or Chapter 13. I told her my situation and explained that it, in my opinion, was imperative she get the best attorney she could find that was versed in these high dollar 401k loan repayments. I am sorry that she is misunderstanding me. All I was trying to do was help. So, I guess I will butt out now. I'll keep her in my prayers as I try to get through my own BK situation the best way possible.
Bankruptcy Wizard
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