Question about confirmation of plan and 401K withdrawls again >>>

[psa10]

I filed back on 08/20/13, had my 341 meeting on 10/09/13 and am still waiting on confirmation of plan here, is this too long here? How long does this usually take to get a confirmation of the plan?

Also would I be screwed if I took out my 401K, cash out 100% and purchased a home? I really just want to move on and move out of state and start over. Anything illegal about picking up, moving out of state and buying a property in a different state? Would still have a small mortgage however would be earning less in the same profession but in a more relaxed setting. Anyone, thanks!

[kjrmom911]

PSA..don't do anything like that without talking to your lawyer. It sounds like you are filing a chapter 13 in which case you may or may not be able to "borrow" from your 401 k. However, how will you pay it back? It sounds like you may be talking about cashing it out completely. Big mistake as I believe it then is counted as income, not to mention all the penalties from the IRS. It isn't worth it. Trust me, I know this from experience. Be patient and let the plan work itself out and do NOT cash out your 401k for any reason. That is your future retirement, don't mess with it.

[psa10]

I just want to move out of this lovely state I am in and move back east, pay around 85% down and have a low house payment, go to work in the same line of work I do know but just at a lower pay rate and live a slower life style I guess and by the time my plan is paid in approx. 4 yrs/9 months I will have 100% paid on my home and will just work basically to pay property taxes, power and food...... don't know why this would be a bad idea...

[grndmom53]

We are also in Arizona. We filed 4/2009 & were not confirmed until 1/2010. THere were no issues, just that courts were very busy. Are you planning on getting a mortgage ? Even with a large down payment I think it would be extremely difficult to get a mortgage in a Chapter 13.

I hope things work out for you.

[despritfreya]

psa,

1. You cannot borrow $$ to purchase a home without a court order.
2. You will most likely not be able to close on the purchase of a home without a court order - a title company most likely will not issue title insurance without a court order once it finds out you are in a relatively new Chapter 13.
3. Confirmation of a Plan in Arizona takes a very long time and even longer if your Trustee is not EM.
4. You are free to move if you wish to. You just need to file a change of address with the court and trustee and file a new Schedule I and J (budget) showing you can still afford the Plan payment.
5. In general, borrowing from a 401k is not the smartest move one can make.

Bottom line here. . . you need to discuss this with your attorney to determine what options are best for you.

Des.