When can I begin contributing to 401K again?

[LostinMi]

I have received my discharge papers -- but case hasn't yet closed (according to Pacer). When can I legally start contributing to my 401K plan again and begin payments on my 401k loan. I got papers that say my 401k loan will default at the end of the month if I haven't made a payment. Any ideas on this?

[newstart]

I guess in all cases things very because I never stopped contributing to my 401K or stopped paying the loan. I didn't know you could voluntarily stop paying back a 401K loan. I know you can't at my job.

[LostinMi]

My lawyer instructed me that I had to.... or the bankruptcy proceedings would hault it. It's not "secured" debt so is considered preferential payment. And she said it would look as if I was paying back myself while not paying others (credit cards, etc.)

Anyway, I guess I will wait hear back from her.

[LostinMi]

Does anyone know the answer to this?? Is it after discharge or do I have to wait until my case is closed??

[ice storm]

We never stopped paying on our 401K's either?? Did we have to? I remember something about my lawyer mentioning our 401k's but figured he'd handle it and advise us if we had to do anything with it?

[LostinMi]

I guess I will start contributing to my 401k again and also start repaying on my 401k loan that is about to go into default & be reported to the IRS for tax purposes. Does anyone know if this may hinder by case closing at all?

[Minnymouth]

I would start the 401K payments again.... your discharge is almost as good as a closing.
If the trustee was going to question anything, he would have already

More than likely he can't touch your 401K anyways.

My payments never stopped to mine......

[LostinMi]

Thanks, Minny. I talked with the HR people and will begin contributing and repaying on my loan (which was about to default).