QUESTION
How do I go about taking a loan out of my 401k in order to pay mine and a portion of my ex-wife's attorney fees incurred during our divorce?
Asked on Aug 17th, 2017 on Bankruptcy - Ohio
More details to this question:
We are also involved in a chapter 13 bankruptcy and our bankruptcy attorney withdrew representation (conflict of interest). Is there a place where I can obtain free legal advice or download the necessary forms (motion wording) for free?
2 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Taking out a loan while in a Chapter 13 has both tax and bankruptcy implications. You need to talk with a lawyer.
Answered on Oct 24th, 2017 at 5:57 PM
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You should get a new attorney to make sure you complete the chapter 13 correctly. Contact the trustee and tell him specifically what you intend on doing and ask for his permission. You should also discuss with a CPA the tax ramifications of taking money out of the 401(k).
Answered on Oct 24th, 2017 at 5:57 PM