money from 401K ??

My husband and I have filed for Chapter 7 Bankruptcy -- we are now waiting on the Trustee. A situation has come up where we need some money and my husband wants me to take some money out of my 401K. I know that my pension plan is exempt, but I don't want to take any money out and that raise a flag as far as our bankruptcy is concerned -- will it?

You may want to discuss this with your attorney, but since you already filed BK, the bankruptcy estate has been created upon the date you filed, and 401K's are typically exempt.

As such, anything you do with exempt property AFTER the date you file is ok. But there can be caveats to this general rule, so you will want to run it by your attorney. But, I think you will be fine.