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loan from 401k during chapter 7

Posted on: 26th Aug, 2009 07:47 pm
I have taken a loan from my 401k does the trustee find out? I need the money to stay current on my mortgage payment this month and my daughters tuition. Will this be found out?
Hi cortez,

As far as I know, if you take a loan from your 401k account, the trustee will be able to find out. If you include your mortgage in Chapter 7 bankruptcy filing, then it is not mandatory for you to remain current on your mortgage payments. If your include the mortgage in bankruptcy filing, the court would order an automatic stay on your creditors and bar them from collecting the dues from you.

Thanks
Posted on: 26th Aug, 2009 08:49 pm
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