401K loan

[lmg]

We have consulted an attorney and were told we could file Chapter 7. We plan to do so, however, we are having a hard time coming up the with money to pay the lawyer. I was thinking of taking a loan out from my 401K to pay the lawyer and also pay my taxes. Do you think this would be a problem before filing?

[keepmine]

That would be the last thing I do to raise money. Have you stopped paying all debts you wish to discharge? If not, stop and use that money for taxes and legal fees.
Those uses would be acceptable expenditures if you raid the 401K.