I am taking money out of my 401K via a loan. I am discharge but not closed. The Trustee did send ntoice that he agreed with all exemptions but tax return money so my case staying openfor a while longer. Since I am discharged but not closed I was told should be ok as trustee already abandoned the 401K money. Is this true?
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That may be true, but why are you taking a loan against your 401K ? -
yes...it is a loan...Comment
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He's asking WHY? You're in bankruptcy and taking on additional debt. It's in your best interest to learn to live within your means rather than jumping straight back into debt right off the bat, before your case is even closed.Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
0% payback to unsecured creditors, 56 payments down, 4 to go....Comment
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I took out a loan after my discharge and before I was closed. I don't see why it would be a problem. I am all for taking loans against a 401k if the scenario is sound but the market is climbing so I would try to take as little as possible.Originally posted by jwdad View Post
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Thanks. Needed massive house repair not covered by insuranceComment
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Hi, just wondering if you were able to take out a loan okay without any problem with your trustee.
We are awaiting discharge (chapter 7). Today is the last day for creditors to object discharge.
We are in desperate need of money. Since I lost my job over a year ago, we didn't have enough income to afford mortgage, that is why we lost our home and filed for bankruptcy. We need to move out soon and the place we found requires 2 months deposit ($3600) due to bankruptcy now on our record. The problem is that we still can not afford to pay rent. We were going to take a loan from our 401k (about 11k) to be able to pay for the deposit and have enough money for the next 6 months for rent (hoping to get a job before then). But we heard that we can not take a loan from 401k until after 6 months from discharge. Is that true?Comment
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