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Post-Petition 401K loan
Yes to David's good point. Aren't their some payback periods for the 401K
before the penalty kicks in? CF
To:
Sent: Wednesday, April 13, 2005 11:56 AM
Subject: RE: [cdcbaa] Post-Petition 401K loan
Tax bells should be going off in your head.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem
500 N. Brand Blvd., #460, Glendale, CA 91203
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Business bankruptcy specialist cert. by Amer. Bd. of Certification
Sent: Wednesday, April 13, 2005 11:03 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Post-Petition 401K loan
Ok, it must be my week to be dumb.
Chapter 7 case and the debtors' car has completely died. He wants to
borrow against his 401K to take money out to pay for a new beater car so
that he can provide for his family at a new job (ironically, it's a
messenger job).
Will there be any issues with "depleting the estate" if he borrows
against his 401K to provide for transportation? The 341a was last week.
Something tells me that this withdrawal/loan will incur trustee
scrutiny, but fairness tells me it should be ok.
Any input is welcome.
Yahoo! Groups Links
Yahoo! Groups Links
The post was migrated from Yahoo.
Ok, it must be my week to be dumb.
Chapter 7 case and the debtors' car has completely died. He wants to
borrow against his 401K to take money out to pay for a new beater car
so that he can provide for his family at a new job (ironically, it's a
messenger job).
Will there be any issues with "depleting the estate" if he borrows
against his 401K to provide for transportation? The 341a was last week.
Something tells me that this withdrawal/loan will incur trustee
scrutiny, but fairness tells me it should be ok.
Any input is welcome.
The post was migrated from Yahoo.