QUESTION

Is it okay to get a withdrawal from my 401k if I filed bankruptcy in July 2016?

Asked on Jan 25th, 2017 on Bankruptcy - Ohio
More details to this question:
I filed chapter 7. I am paying 100 percent to my bankruptcy plan.
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4 ANSWERS

Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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Chapter 7 bankruptcies don't have a plan, if you have a plan, then the trustee might take your distribution and use it to pay your trustees.
Answered on Mar 24th, 2017 at 8:27 AM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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You are contradicting yourself. You do not pay 100 percent to your plan in a Chapter 7 case. In Chapter ,7 you do not have a plan at all. It really matters that you are in Chapter 13 instead of Chapter 7 because in Chapter 13 you must have permission from either the court or your trustee to borrow or withdraw funds from your 401K whereas in Chapter 7, you may do as you like 30 days after your 341 meeting takes place.
Answered on Mar 22nd, 2017 at 5:35 PM

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Not sure I understand the facts. A Chapter 7 is normally closed out in four months. Do you mean a Chapter 13? I would pay an experienced BK lawyer for one hour of their time to review your BK file with them. There's not enough information here to hazard a guess.
Answered on Mar 22nd, 2017 at 5:35 PM

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Bankruptcy Attorney serving Cleveland, OH at Benson Law Firm
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If you are paying a 100% dividend into a bankruptcy plan, you are not in a Chapter 7. You are in a Chapter 13. And you should not need to dip into your 401k if it was done correctly. I can only assume that you are trying to do this without a lawyer, which is a HUGE mistake. The cost for a Chapter 13 lawyer are minimal compared to the amount of money you could lose without one. You REALLY need to consult competent counsel.
Answered on Mar 22nd, 2017 at 10:11 AM

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