QUESTION
What are my options if I need to take out pension loan to repair my car which I use for work?
Asked on Nov 17th, 2016 on Bankruptcy - New Jersey
More details to this question:
My chapter 7 case was filed on 9/28/16. My car is a 2008 Mercedes and repairs are expensive and although I don't want to incur new debt, I have no other option but to fix it or try to buy something cheap but reliable to do my job. I was told to wait to take out the loan.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Being in a Chapter 7 doesn't affect your ability to take a plan loan from your retirement account.
Answered on Dec 23rd, 2016 at 6:59 AM
Your discharge could come in before the end of the year. The first available date a discharge would be able to be issued is 60 days after your 341 meeting. On day 61, call the court clerk and ask nicely if they can expedite your discharge. Then you can comply with your attorney?s recommendations and get your car repair money.
Answered on Dec 21st, 2016 at 5:16 PM
Assuming you do not have EXCESS equity in your car, by all means, take out the loan and repair the car.
Answered on Dec 21st, 2016 at 5:16 PM
No, you do not need to wait at all to take a loan on your retirement account. That is your own money you are "borrowing". And, the Chapter 7 Trustee, nor the Court, would care whether you took out a loan from anybody.
Answered on Dec 21st, 2016 at 5:16 PM
Bankruptcy Law Attorney serving Livingston, NJ
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I would wait until after your 341 and then for the time line for the Trustee or any other person to object to exemptions to expire.
Answered on Dec 21st, 2016 at 9:32 AM