Central District Consumer Bankruptcy Attorney's Association

John:
I do not think so. The ninth circuit decision and Egebjerg says 401(k) loans are borrowing from yourself. The loan payment is just a transfer of an asset from one form to another, aka exemption planning.
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> On Mar 7, 2016, at 10:16 AM, John Faucher j.d.faucher@sbcglobal.net [cdcbaa] wrote:
>
> Hello brain trust:
> PC called me after he applied for a $30,000 loan from his 401(k). If he spends $5,000 now on legitimate expenses, then returns $25,000 to the 401(k) right away, then files bankruptcy, will the trustee have the right to claw the payment back? I'm thinking the payment meets all the 547 criteria, except . . . is the 401(k) program really a "creditor"?
> - John D. Faucher
> 818/889-8080
>

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Please contact me at Peter@petermlively.com if you are a 3 to 6 year attorney interested in assisting with chapter 13 and 11 motion work.
Thanks
Peter
310-391-2400
Sent from my iPhone - please excuse typos.
Thank you.
From j.d.faucher@sbcglobal.net Mon Mar 07 10:16:07 2016
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Hello brain trust:PC called me after he applied for a $30,000 loan from his 401(k). If he spends $5,000 now on legitimate expenses, then returns $25,000 to the 401(k) right away, then files bankruptcy, will the trustee have the right to claw the payment back? I'm thinking the payment meets all the 547 criteria, except . . . is the 401(k) program really a "creditor"?- John D. Faucher
818/889-8080

The post was migrated from Yahoo.