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Borrowing form 401(k)
Why doesn't he just borrow it now and jersey making the regular payments.
Sent from my iPhone
> On Jul 24, 2017, at 3:56 PM, Shannon Doyle sdoyle@ebankruptcyassistants.com [cdcbaa] wrote:
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> Debtor has about 7 months left on his plan. The plan will fall short by approximately $4,500. Debtor cant increase his plan payment to cover the difference. Can debtor borrow from his 401(k) to pay the deficiency at the end of the plan? If so, would I need to file a motion to incur debt once we get the trustees notice of infeasibility? Or should I file a momod now stating he will pay a lump sum at the end with his 401(k)?
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> Shannon A. Doyle
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> Attorney | Virtual Bankruptcy Assistant
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> Phone: 855-378-4080
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> Fax: 562-249-8435
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> Licensed in California
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I had a similar situation causing infeasibility and we notified the trustee that Debtor would voluntarily increase plan payments using exempt 401k
money so that the plan could payoff. They continued the MTD, and made sure
the (increased) plan payments were made but what I am finding that the
trustee's are now looking more carefully at case closing/auditing files. I had a feasibility issue in another Debtor case, where we calculated the shortfall and simply increased the plan payments recognizing that Debtor HAD
to pay the plan before any discretion expenditures for food, emergency,
and/or living.
Despite having provided tax returns over the years, some trustee's are now objecting based on the lack of annual income/expense reporting which is incorporated in some of the plans in various ways by various trustees (so even
if it is not in the plan or the code, they want more). Still working on this one... anyone else have this problem at time of case closure??
Very truly yours,
Shai Oved
The Law Offices of Shai Oved
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Tel: _(818) 992-6588_ (tel:(818)%20992-6588)
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Email: ssoesq@aol.com
_www.shaioved.com_ (http://www.shaioved.com/)
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In a message dated 7/24/2017 4:02:21 P.M. Pacific Daylight Time,
cdcbaa@yahoogroups.com writes:
Debtor has about 7 months left on his plan. The plan will fall short by
approximately $4,500. Debtor cant increase his plan payment to cover the
difference. Can debtor borrow from his 401(k) to pay the deficiency at the
end of the plan? If so, would I need to file a motion to incur debt once we
get the trustees notice of infeasibility? Or should I file a momod now
stating he will pay a lump sum at the end with his 401(k)?
Shannon A. Doyle
Attorney | Virtual Bankruptcy Assistant
Phone: 855-378-4080
Fax: 562-249-8435
Licensed in California
(http://www.ebankruptcyassistants.com/)
(https://www.facebook.com/ebankruptcyassistants)
(https://twitter.com/attorneyvba) (https://plus.google.com/u/0/)
The post was migrated from Yahoo.
In a similar situation, I got approval to borrow from debtor's 401k, in a lump sum that was projected to be sufficient to cover the shortfall, and a motion to amend plan. It was uncontested (or trustee did not object hard). 1:11-bk-12456-VK docket #98 etc
JASON WALLACH
jwallach@ghplaw.com
Gipson Hoffman & Pancione, APC
1901 Avenue of the Stars
Suite 1100
Los Angeles CA 90067-6002
Office: (310) 556-4660
Fax: (310) 556-8945
Website: www.ghplaw.com
[ghp_logo]
The post was migrated from Yahoo.