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Less than 30 days from BK being over --- Notice of Dismissal for Lack of Feasibility

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    #16
    I don't think anyone in a 13 is contributing the max. But if you take a covid withdrawal, you get 3 years to pay the taxes and pay no penalties. You have the option of paying it back into an IRA. When you put it into an IRA, tell the brokerage to flag it as a rollover or CARES act repayment and not as a contribution. You probably won't be able to repay into a 401k. So it doesn't really matter if you are maxed out on a 401k or not.

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      #17
      Shhh, don't tell nobody, but I was at my max contribution for my 401K for the last two years of my Chapter 13.
      Latent car nut.

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        #18
        flashoflight - the. Cares act does include withdrawals from a 401k with the ability to repay it within 3 years..this was an option for employees at my husband’s work and was included in the cares act documentation.
        Filed Chapter 13 - 07/20/12
        Discharged 8/2/16

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          #19
          Same thing happened to us (in Missouri, too). In our case, the attorney waived the $3000 in fees we still owed him and that fixed it for us. Bringing a lump sum would have been an option as well. I think the issue comes in when “not enough” gets paid to unsecured creditors...they have to get what they would have gotten had you filed a chapter 7. It’s scary, but it will work out...no one wants to see you fail!
          Chapter 13 - May 2014
          Broke but not broken...

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