401K Question --- After you have Filed?

[Fallonedward]

I filed chapter 7 about 10 days ago.

All 3 of my children have been in private school their whole lives. My middle son took it the hardest when we had to pull everyone out of private school when hubby lost his job in March of this year.

Thus far he has gotten into trouble twice now (prior to this he was an all "A" student and no discipline problems)

Our town has a curfew that states anyone under 15 has to be inside or escorted by an adult every night after 10pm. After hubby and I went to bed back in June on a Saturday night he snuck downstairs and out of the house at 11pm. He soaped a neighbors car and was caught by the police and the police brought him home in a squad car. We grounded him for 2 months, made him apologize and do 5 hours per week for 2 months at the neighbors house that he soaped. At the time he told us he did not fit in at the public high school and that he was meeting the only person that befriended him at his new school. We have been monitoring the shit out of him since. He brought his grades up from the C's he was getting to B's.

Last night he asked if he could go to a movie with a group of kids from the high school. Well at 11pm the police showed up and stated that our son was taken by ambulance to the hospital because he was 3 times over the legal limit for drinking. Our son was to call us when the movie got done and we were to pick him up. Instead it looked like he went to a party and got drunk as a skunk.

I have spoken with two of his teachers at his new school today and they both told me via email my son is a great kid and very sweet but being the new kid on the block, the good kids don't want to hang with him, so he his hanging with kids who are a bad influence on him and he does not seem to have the ability to say no to the peer pressure.

I want to pull money out of my 401K and get him back to his private high school. Can I do this?????

[free2breathe]

My gut instinct says that you shouldn't pull anything out of the 401 until after discharge. At this point, anything you do moneywise can impact your case. Definitely call your attorney first thing Monday and see if they can give you some idea of what might happen if you do that.

I totally feel for you regarding the school issue. High school is such a tough time, and to be forced to make major changes just upsets the apple cart so much. I suppose it's too much to hope that the private school might be able to offer some sort of hardship scholarship for your son?

[AngelinaCat]

You should not pull anything out of your 401K, period because of the income tax nightmares that will befall you. You may be promising yourself that you will pay it back in a timely fashion, but 'Real Life' dictates that this will NOT happen, no matter how much you promise yourself, and all of that jazz.

Your son is acting out his frustrations with not being able to go to school with his friends. Sorry, but this is the time to Parent-UP and tell him the entire truth about your financial situation, and that you expect him, as a member of your household, to contribute his 'fair share'. His 'fair share' may be simply that he is going to have to get used to going to a different school. Period.

You ARE the Parent. YOU must stand firm. This is a great way to teach him and the other children, financial reality and responsibility. It seems that the schools, whether private, or Government operated, are not teaching this.

Good luck to you.

[debee]

I agree with f2b. Your assets are property of the bankruptcy estate. Whatever you decide to do, you should wait to do it. Sorry you're going through so many difficulties at once. I can't imagine. Bk alone is enough.