hardship withdrawl 30 days before filling

[psx402]

Could using a hardship withdrawal from my 401k to bring both mortgages up to date present an issue when filling? I need to do this seeing that I fell behind on mortgage due to having worked payment plans with Credit card companies. They had monthly access to checking account and being the fool I was, they got paid 1st before mortgage and bills. I soon closed that account that they could take from and opened another to stop paying them. I then needed to do a hardship to get current on bills and mortgage. Now that they don't have access I am current on all main bills and mortgage due to this withdrawal. I can stay current with my monthly budget with my income, with less then 100 left a month.

[keepinitreal]

We also took a 401(k) hardship withdrawal shortly before we filed. Since it was completely spent on bills before we filed, there was no issue. The Trustee didn't mention it.

[AngelinaCatHub]

I am never for advising this mistake of robbing your retirement. The penalties and taxes are outrageous. If you must, "Keepinitreal" is correct as it is for exempt reasons. It also depends upon your intentions. Are you bk meat? If so, when will you file and if you are going to do so, will you give up the house? If affirmative, don't put good (retirement) money after bad. If negative, then do what you have to do to get caught up. Don't get into a loop though and make a common mistake thinking you will dig yourself out, and can't and have lost much unnecessary funds. (as we did). 'Hub

[keepinitreal]

Don't get into a loop though and make a common mistake thinking you will dig yourself out, and can't and have lost much unnecessary funds. (as we did). 'Hub

That's a very good point about throwing good money after bad. My sister has borrowed a lot of money from family trying to keep her house, but is losing it in a couple of days at a Sheriff's Sale. She was understandably overly-optimistic about being able to keep the house, and only delayed the inevitable.

[psx402]

the intentions is to keep the home, However i will not be reafriming the home loans. I could not find a rental that was cheaper then my monthly payment that can handle a household of 7. In a couple years i may walk away once i have rebuilt my credit and can get another home loan.