Questions on BK - please help!

[needinganswers]

Isn't 401K loan considered an expense? I owe my 401K and currently paying $193 per pay check and yet the lawyer didn't list on current expenditures or subtracted from current income. Thus, am really short by an add'l $386 a month. Help!

Also, my husband got his student loan deferred till August. However, again, I noticed that the lawyer didn't list the monthly student loan of $701 on schedule J. Instead, she put $100. Am confused.

My husband got a job offer, but our 341 meeting won't be until next month. Am afraid if he starts working, our chapter 7 will convert to chapter 13. Although because the job will be out of state, he'll be forced to get an apartment. Am thinking we could put that down as an expense.

When do we expect to be discharged? Is it from the time we filed or from the time we had our 341 meeting? Thank you so much in advance for any advice given.

[mymymy]

Your 401K loan repayment is not seen as an expense.. unfortunately, it is seen as disposable income by the courts. The courts do not recognize 401K loans as true loans because you are paying yourself! Most Trusttees will let it slide providing that, if you stopped the repayment, you would still be safely within Chapter 7 territory. As far as your petition is concerned, the amount should be noted in your paycheck withholdings on schedule I, line "other".

I can't answer for certain on your other issues, as far as future maybe's. The only thing I can think of is to address the events as they occur and as they pertain to the timelines ie. 341 meeting. You will have the opportunity to let the trustee know if there are any changes to be made.

It is curious as to why your attorney listed 100 instead of 700. You may need to amend your petition.. I'm sure our Gurus will be along shortly to help.

[HHM]

As for future events, in most circumstances, the BK court and trustee only have jurisdiction to address things that happend up until the date you FILED your petition, if your spouse gets a job while the BK is pending, its generally a non-issue becuase post petition earnings are not part of the Bankruptcy estate (what I just said is the general rule, but there are some ins and outs you should discuss with your attorney).

mymymy already addressed the 401K and is correct. You list it as an expense, but its not considered a necessary living expense.

As for the student loan, you are currently paying $100 per month, so that is what gets listed as the expense, you list what you are actually paying as of the date you file BK.

[needinganswers]

Thank you so much mymymy and HHM for your help. I really appreciate it.