Is a 401k loan considered income on the means test?

[JasonK94Z]

Like the title states, if I pull a $1000 loan from my 401k to pay the legal fees to get my chapter 7 filed, will the $1000 then have to be figured into the means test as income during the past 6 months?

[freshstart06]

I don't think loans but early withdrawals yes. My husband pulled two loans out and it was considered loans not income.

[kiddles]

Is a 401(1) loan an priority debt, an unsecured debt, or what?

Is the payment considered a mandatory payroll deduction, since the borrower doesn't have any choice but to let it be deducted from paychecks?

[HHM]

401K Loans are not likly to be considered income because they are generally a 1 time event.

However, for purposes of BK, 401K loans are NOT debts...so in that respect, you do not list your 401K as a creditor. Keep in mind, you are borrowing money from yourself. The current law (since the change in the BK law is nearly 2 years old, I think we can stop referring to at as the "New Law") does allow for 401K loan repayments to be considered a legitimate expense, but how much and to what extent will vary by district.

[Yankeegirl]

The rules for Chapter 7 and Chapter 13 are apparently different.

Chapter 13 allows for 401(k) loan repayment and 401(k) deductions

Our US Trustee is arguing that we should not be allowed the loan repayments or deductions under Chapter 7, but rather, use that income to fund a Chapter 13 payment plan. (this is one of many issues we are "fighting" with the UST over)
The irony is that there are allowances for 401(k) loan repayments and deductions under Chapter 13.
While this may be the current law, it is still new enough that not everything has been worked out.