TWO QUESTIONS: School and Foreclosure

[cin]

PS -- The school is a community college, the program is Licensed Practical Nurse (several of my friends are nurses), and I am looking into trying to get some funding through unemployment -- Currently in Massachusetts there are no more funds for training, but that could change .....

[cin]

Yes kawh I don't have much debt ... I owe 175 on condo (its worth 105K), my car is paid for, but it's 12 years old (2002 Saturn SC), and about 6,300 visa bill. That's it. The job loss was a shock, but it might be my way out from under a -70K mortgage ... AND I can change direction on how I make a living.

Again, I am STUCK with this thing about ho to afford the 15K I need for school. It's ideally located five minutes from my condo, which is perfect, considering how old my car is. I just can't figure out the TIMING on everything ... If I need the 15K in mid-July, I need to figure out WHEN to stop paying the mortgage ... I

did talk to a bk lawyer in early June, and he suggested filing a Chapter 13, then converting to a 7. A lot also depends on if the lawyer can get anything from my **** employer ....

I HATE not having control over this! It depends on the employment lawyer .. it depends on if my ex-employer will settle with me, it depends on the bk laws ... UGH!!!

Anyways I CLEARLY have to get out from under this mortgage ... To be underwater by 70K and now unemployed ... well it's crazy. I'm 53 and even if I worked until I was 70, I'd probably still be underwater. I could buy the identical condo next door for 105 TODAY .

[kawh]

I wonder if you would be able to get a tuition deferment or extension of some kind, to still be able to enroll and yet avoid withdrawing all of the 401k money until the following tax year, when you will be in school most of it and will take less of a tax hit on the withdrawal? I know you can avoid the penalties because it's for school, but you will be looking at a tax bill, depending on your other income next year. If you are intent on using the 401k, you could still try to work the timing to your advantage.

I'm also a little concerned you could be thinking you will have to file, but it seems you might have very little debt other than the mortgage?

[HHM]

Don't touch the 401(k) until AFTER the BK. If you will be "starting" school prior to filing BK, only withdraw the amount needed to actually "pay" the amount the school requires. (e.g. 1 semester).

Also, you don't need to wait until you miss a payment or a foreclosure begins to file BK. No reason in delaying the inevitable. File now (unless there is some other reason).

As for MA foreclosure, each state is a little different, so I don't know off hand, how long foreclosure takes in MA. MA appears to be a typical non-judicial state, so yo are probably looking at 9-12 months from your first missed payment before you would have to be OUT of the house.

[helpmeout]

I would not touch your 401K until after your BK is closed. The Trustee may go after any recent withdrawels.

[cin]

First off, I just want to thank everyone here who have been so kind to respond in the past.

I am in Massachusetts, and here are my two questions:

1. Once I stop paying my mortgage, what do you think is the approximate amount of months that would go by before I actually have
to claim bankruptcy? (Sovereign Bank, if it makes any difference).

2. If I haven't claimed bankruptcy yet, I want to take out exactly the amount of tuition I will need for school from my 401K. (I will still
have over 100K left, and school is my ONLY real way of assuring future income. It's a 10 month program).


2A -- If I "AM" in bankruptcy, would taking money from my 401K for school NOT be allowed? I have a ways to go to figure this out. Tuition
won't be due until mid-July of next year ........ If I took it out of my 401K in July and claimed bankruptcy he next month, would that
be a problem??