Need car repair while waiting to file....401k money

[Waited2long]

I have retained an attorney and will be filing chap 7 as soon as we can finish paying his fee. Now a car which we own needs a repair in the next week in order to keep it on the road (fails state inspection). Need it to get to work and seems like we will be able to keep car. As much as I have tried to avoid using it, the only money I have to work with would be an early withdrawal from my 401k. Any repercussions from doing this. Lawyer is on vacation but someone in his office checked and said I will be OK. It is a relatively small amount, under 2k. Any advice would be appreciated.

[sunshinepa]

I would be careful doing this. Example.......I filed 4/15/11. Had already rec'd my income tax refund of 1049.99 and it was spent on food, bills and etc. My attorney had to include that as income. This took my 6 month income up by 86.00 a month. I was fine because I was close to 800.00 a month under median but you may want to see where 2000.00 would take you. Not an expert but do believe it would be counted as income.

Maybe some experts can chime in???

[IamOld]

I would be careful doing this. Example.......I filed 4/15/11. Had already rec'd my income tax refund of 1049.99 and it was spent on food, bills and etc. My attorney had to include that as income. This took my 6 month income up by 86.00 a month. I was fine because I was close to 800.00 a month under median but you may want to see where 2000.00 would take you. Not an expert but do believe it would be counted as income.

Maybe some experts can chime in???

I think you're quite right - withdrawals may count as income...any chance you could take a loan out? Spending on lawyer is not a problem as that is considered "ok" (can't think of the right word right now) but withdrawal...of course averaged over six months - 2000/6=$333.33/mo...

[Cavedog]

I was told by my attorney not to count tax refund as income received for purposes of the means test..now I am a bit confused. Maybe it varies by district?

Since I got it in February and have extra cash to spend anyways and my income is lower now than what it was at the first of the year, might have to delay filing by one month just to make sure..

[sunshinepa]

Cavedog.

It may not count on the means test, I am not sure. I did not have to fill out the means test with my BK paperwork as I was below median income. The trustee never ask anything about it today and he reviewed my tax return in front of me. Keep in mind though, my paperwork showed it as included in income. Not sure if district makes a difference. Just be sure about the money for the car........it could really mess up your filing if you are close to the median income.

Good luck!