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Automatic stay and repayment of retirement plan loan
I understand that Changing the loan to a withdrawal is automatic if not repaid according to terms..
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On Dec 17, 2009, at 9:10 PM, Catherine Christiansen wrote:
If she doesn't repay she will have to pay taxes because the loan would change character to a withdraw? I am not sure how she can change a loan to a withdraw. It seems she would need to find out if she can do that. Perhaps she can close the whole thing out and then reopen a new one and pay taxes on the amount that she is not repaying?
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wrote:
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If she doesn't repay she will have to pay taxes because the loan would change character to a withdraw? I am not sure how she can change a loan to a withdraw. It seems she would need to find out if she can do that. Perhaps she can close the whole thing out and then reopen a new one and pay taxes on the amount that she is not repaying?
Law Office of Catherine Christiansen
1077 E Pacific Coast Hwy #210
Seal Beach, CA, 90740
Tel: (562) 361-8721
Fax: (562) 490-8572
attorneychristiansen@gmail.com
This e-mail is private and confidential and is intended solely for therecipient(s) named or otherwise identified herein. If you are notnamed or otherwise identified as an intended recipient, please deletethis e-mail message and any copies thereof and immediately notify theLaw Offices of Catherine Christiansen by e-mail or by telephone (562)608-8368.
wrote:
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Automatic stay applies.
But if client does not repay, there is a large tax penalty. Have client check penalty before you file for her.
Also, some plans must be repaid. I it s secured loan, just like a car loan. If she is in a company plan that must be repaid and she refuses to repay, she may lose her job.
Check all these things before filing.
dennis
wrote:
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I guess Im trying to ask if the automatic stay applies to the benefits director of the employer. Im a little confused about the relationship between the employer and employee because the money being collected from the employee by the employer is the employees money. She took out a loan against her retirement account and, ever since, the employer has been deducting an $830 monthly payment. She wants to stop that. I filed a C7 for her and listed the employer as a secured creditor.
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MGE,
don't understand the question. Are you asking if the debtor can file a bk so she does not have to repay the retirement loan for some period?
Are you asking what the other creditors can do to stop the repayment of the debt?
What chapter is the debtor filing?
dennis
wrote:
The post was migrated from Yahoo.
A client received a loan from her retirement account. She was making a
monthly payment deducted from her paycheck. The creditor for those payments
is the benefits/hr office of her employer, but it's also her money. What
are the creditors options as to the automatic stay? How long can she have
the payments stopped in the automatic stay?
____________________________________
Law Office of Matthew Gary Evans
Matthew Gary Evans, Esq.
16 North Marengo Avenue, Room 219
Pasadena, California 91101
Tel.: (626) 405-9448
Fax: (626) 768-7565
Cell: (213) 842-6645
Email: matthew@matthewgaryevanslaw.com
www.matthewgaryevanslaw.com
www.matthewgaryevanslaw.net/Bankruptcy
please visit my blog at matthewevanslaw.wordpress.com
Member: California State Bar, American Bar Association, Consumer Attorneys
Association of Los Angeles, Central District Consumer Bankruptcy Attorneys
Association, National Association of Consumer Bankruptcy Attorneys, Pasadena
Chamber of Commerce
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not the named addressee please do not disseminate, print, or copy this
e-mail. Please notify the sender immediately by reply e-mail if you have
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Thank you.
A
client received a loan from her retirement account. She was making a
monthly payment deducted from her paycheck. The creditor for those
payments is the benefits/hr office of her employer, but it’s also her
money. What are the creditors options as to the automatic stay? How
long can she have the payments stopped in the automatic stay?
The post was migrated from Yahoo.