QUESTION
Will withdrawing my 401k during a bankruptcy to pay on overdue student loans affect my bankruptcy?
Asked on Oct 23rd, 2013 on Bankruptcy - New Jersey
More details to this question:
I go to court to meet with creditors and my lawyer in two weeks.
8 ANSWERS
No, it will not cause a problem with your bankruptcy if you withdraw money from your 401k account while you are in bankruptcy.
Answered on Oct 25th, 2013 at 1:28 AM
In all likelihood, withdrawing money from a 401K will not cause a problem with your bankruptcy, but why would you do this. Talk to your lawyer, but as long as your bankruptcy is active, your student loans can't do anything to collect from you.
Answered on Oct 24th, 2013 at 2:29 PM
2 Awards
I recommend waiting to do this until after your case is concluded.
Answered on Oct 24th, 2013 at 2:02 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
at
Sisson & Kachinsky Law Offices
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Just be sure to disclose this to the trustee.
Answered on Oct 24th, 2013 at 11:43 AM
Deborah F. Bowinski
You really need to discuss this question with your lawyer.
Answered on Oct 24th, 2013 at 10:38 AM
Your lawyer is the better source of information regarding your question because he or she knows your situation better. There are too many variables, I.e., that chapter did you file. Ask your attorney and don't do anything until you speak to him or her.
Answered on Oct 24th, 2013 at 9:57 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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If you are in an active Chapter 7 or Chapter 13, you will likely want to visit with your attorney regarding withdrawing from your 341. In some instances you may need Trustee permission, perhaps even a Court order, and in other instances it does not matter.
Answered on Oct 24th, 2013 at 9:12 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
If you are in a chapter 13, should be paid through your Plan. If in a chapter 7 should not be a problem.
Answered on Oct 24th, 2013 at 7:36 AM