Plan for BK 13 tomorrow. Need help

[Hope2009]

I plan for Bankruptcy Chapter 13 tomorrow. Here is my case

1) Credit Card debt: 60K

2) Stock margin debit: 52K

My gross income is around 110K a year. All of the credit card debt come from cash check few years back with few interest 1.9-3.9%. I have no problem paying back all the credit card debt within a few years with such low interest.

The problem is that I got hit by owning too much stock margin and with Lehman Brother bankruptcy, not only my saving is wiped out I own stock broker 52K in debit. I plan to take out my 401K to pay the debt but not much left since it also down by 50%

I have asked the stock broker for to delay the payment until sometime next year but they refuse and demain the payment right away

Income: Bring home 6K
Mortgage: 3K
Tax and inssurance: 1K

I have only 2K left a month for everything else including child care

I wonder if the debit from stock broker can be included in BK. If anyone have any idea please help

Thanks and happy holiday to all

[Bandit]

That does sound like a ch13 to me.

But are you sure that you have to file this 13?
Is it because of the immediate demand for the 52K? and will that help you better in the long run by taking 5 years to pay them back?

I wonder if there is a better way, since it sounds like you can afford to pay them back but not in one lump sum.

[ansky0007]

That does sound like a ch13 to me.

But are you sure that you have to file this 13?
Is it because of the immediate demand for the 52K? and will that help you better in the long run by taking 5 years to pay them back?

I wonder if there is a better way, since it sounds like you can afford to pay them back but not in one lump sum.

I would not touch the 401k... That money is safe and cant be touched. Get a consult with a lawyer asap..

[Bandit]

I would not touch the 401k... That money is safe and cant be touched. Get a consult with a lawyer asap..

I agree for the most part. Except for some retirement plans can be touched (like rollover accounts) but most people think they can't and there is also a cap on them.

It sounds like they already lost half of the 401K plan .

I was thinking some kind of loan to pay back the margin but on the other hand with that & CC debt, a BK would be worth it to me. Either way there is too much left over at this point so 13 is the only option in a BK. I am not so sure they actually come out ahead by doing a 13 & having that on the record when there is plenty of income to pay it back another way.

so it is a toss up between 13 & letting go of the 401K to pay them back...or what?...another loan. Either way, it (most of it) is going to be paid back in this situation. (me thinks)