I am currently 2 years into a 81.54% chapter 13 repayment plan in the Ohio Southern District BK court.I filed ProSe .Due to health problems I want to retire,take a partial lump sum payment and pay off my plan early. Is this possible?
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Your best bet would be to see if you can get a hardship discharge. This is allowed for people with serious health/medical issues that would not be able to complete the plan. Otherwise, I really wouldn't suggest taking retirement money out to pay off the plan early, just so you could retire.
So what would 100% be anyhow? If it's $1,000 or so, I might be inclined to look the other way and not say anything. If we're talking $10K and more... it's not even a question for me to tell you to not take the withdrawal. The only nice thing is, that I'm guessing that you're over 59.5 years old and you won't get the 10% penalty. However, you would get taxed!
In the end, you really need to run the numbers and see how they work.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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