During Chapter 13, if the trustee continues to let you contribute to your 401K
plan, can you borrow money from your plan and pay yourself back?
plan, can you borrow money from your plan and pay yourself back?
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NO, not unless the trustee approves the loan.Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
Plan Confirmation 6/16/06 :yahoo:
Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo: -
Basically there's only 2 types of new loans you can take while you're in Ch 13. Mortgage and car loan. Both have to be approved in advance by the Trustee. AND you have to have been in your plan for a year first.
If you're planning the 401K loan to buy a house or a car, AND you've been in the plan for a year, you may be able to get your Trustee's approval for that. But you can't just go and take a 401K loan for any other reason, and not without Trustee approval.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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