Should we deposit the check now?

[soon2Bdone]

This is my first post on this board even though I have been reading it for weeks now. There are some smart people around here and I'm hoping you all can help me with a question I have. O.K, here is the scenario

My wife and I filed for BK back in Dec of 2002. We have made all of our payments on time and haven't had any issues with the trustee. We recently went in to see our lawyer to discuss paying the BK off early. We were told by him that if we could come up with the 11K that he didn't see a problem with us filing a motion or what ever it is to pay out.

While he was reviewing our case, he noticed that the rest of the money was going to creditors instead of paying of my back child support. I told him to file what ever papers he needed to fix the problem and to get back with us. He filed the papers and we went off to figure out where we could get the money.

We decided we would take a loan out of our 401k for 15K. We then place a call to our lawyer and informed him that we have access to monies that we can use to pay off the ch13. He goes into our ch13 to review things again as this is a month or so later, only to find that child support objected to the amount that they gave us in the beginning.

The trustee denied their motion to adjust the amount, but gave them another thirty days incase they wanted to fight it. So here we are with a check for 15k ready to pay out, but we have to wait on this matter to clear up. My question to you all is can we deposit this check now or should we continue to hold on to it? Our lawyer would like us to hold on to it, but we did have plans to school shop for the kids, and to have one of the cars repaired with some of the left over. What do you all think?

Thanks for your help and time.

[bkbiker]

So close to finally getting that discharge and getting on with your life; seems like you have a fair and good Trustee with whom you are dealing.

Is your plan payback at 100%? If any of your creditors file an objection to increase your plan payments; that now has to be approved by the bankruptcy court.

Did you file a motion with the court to incur new debt?

Seeing how you have the approval of the trustee to pay off your bankruptcy it does become harder for any objections to stick.

If you have the check in hand, than the loan is already done and complete? So there is no going back anyway, the money is yours. Seems like if you withdraw some to take care of school needs and car repairs that it shouldn’t matter much, however if you have problems with temptations to spend money and lack of control than don’t cash that check just yet.

Good luck,
bkbiker

[Danielle1981]

Uh....child support is a sticky one. In Colorado they don't have to agree to include that in a chapter 13 and can go back after you separately for back support and interest.

[soon2Bdone]

Thanks for the replies.
Danielle, I think they can do that in every state, but you would think they would rather get a large lump sum payment now and fret over the remaining balance later. What would be the point in not excepting any of the money? I just want them to agree to the amount it was when we filed the ch13.
Even though I pay every month including on the arrears it just seems to keep going up. If they will take this money now, so we can finish paying out, I can knock out the rest of it in no time.

[Fedler]

Taking a loan out of your 401k to pay off your bankruptcy was a huge financial mistake. Obviously filing bankruptcy taught you nothing about finances. Too bad those "classes" they make you take are only online forms, chats, or phone calls. Maybe if you had talked to a real human being who knows something about finances you would have actually learned something.

Keep up your current behavior, and the concept of retirement will be a pipe dream. You'll work until your 90.

[soon2Bdone]

Fedler,
Thanks for your input but it was not very helpful; seeing as you didn’t tell me anything I don’t already know. I never asked if taking out a 401k loan was a good idea. I already knew the answer to that question.

[CAB_44]

fedler....needs to change the F to an M .......................
fedler medler.......well...that makes sense now doens't it~
ugh~ sorry guys~ he's just an IDIOT