I'm so confused...I took out a 401k loan to pay for my car. It is a direct deduction from my paycheck. Does this figure anywhere into filing bk7?
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Originally posted by Rumpole View Post
do you mean can you use it for the means test? Or do you mean does it discharged?
But here's what i know : A 401k loan is not dischargeable in BK; and most trustees do no allow for the payment to be included on your expenses.Filed Pro Se: 10/16/2009
341 Scheduled: 11/23/2009
Last Day for Objections: 1/22/2010
Discharged: 1/28/2010 -
I want to include it as an expense. Not discharge it.Comment
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here's the bad news not only can you NOT use that payment as a deduction. It can be counted as disposable income.Chapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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Hey, TEW, can you look that fact up, for all of us? It is her/his monies and it is a loan against their own account, and could be taxible if defaulted. But, if the OP pays the car/loan what is the problem? It does take away from the general family funds as an expense. Only the creditor is her/him.Originally posted by TEW View Post
Good question for all of us and should be a "sticky". Prove this for us please, (I'm too tired). 'Hub and Mrs. CIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.Comment
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Sure thing HubOriginally posted by AngelinaCatHub View Post
http://www.thebklawyer.com/thebkblog...-calculations/
That loan is not Debt is a loan of your own money that whats so bad about them.Chapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008Comment
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401K loans are NOT debt in a BK. Thus, you cannot claim them as an expense.Comment
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Just so every one is clear - 401K loans *can* be counted as expenses if you file Ch 13 - at least in the 10th district. And the reason I'm so sure is because our case was the basis to create case law allowing it in our district
I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to goComment
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