QUESTION
Can I get a loan from my 401k while in chapter 13 for automobile needs?
Asked on Apr 15th, 2013 on Bankruptcy - California
9 ANSWERS
It is possible, but may require approval from the trustee and from the court.
Answered on Apr 16th, 2013 at 10:18 PM
Richard hirsh
Yes you can however you would have to request permission from the court since you would then be undertaking a new financial obligation which might affect your ability to fund your chapter 13 plan.
Answered on Apr 16th, 2013 at 9:26 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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During a chapter 13 Debtor must obtain permission from the court before taking on new debt. You'll want to discuss your needs with your attorney so he/she can file the appropriate motion with the court.
Answered on Apr 16th, 2013 at 9:16 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Ask your chapter 13 attorney. If you do not have one, then consider hiring one to help you through this very long and complicated process. If you insist on not hiring a good chapter 13 attorney, then ask the trustee. Beware that the trustee is not your lawyer and may not be comfortable giving you legal advice.
Answered on Apr 16th, 2013 at 9:06 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Probably. You generally should run your proposal past the Ch. 13 Trustee, whose agreement is needed in most or all cases.
Answered on Apr 16th, 2013 at 9:01 PM
In our district you at the very minimum you will have to get your Chapter 13 Trustee's consent to incur such debt, and said Trustee may require you to obtain a Court Order authorizing said new debt. Chapter 13's are totally budget-driven, and a new 401K loan will decrease your monthly take home income and in some instances negatively impact your ability to make your required Plan payments. Be sure to fully discuss this matter with your attorney.
Answered on Apr 16th, 2013 at 8:57 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Probably but it may need court approval.
Answered on Apr 16th, 2013 at 8:54 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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Have your attorney check with the Chapter 13 Trustee. Depends on many different things which were not detailed in the question.
Answered on Apr 16th, 2013 at 8:39 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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You need to ask the trustee for permission.
Answered on Apr 16th, 2013 at 8:35 PM