Posted on: 24th Feb, 2010 05:47 pm
help.... i got my moartg. modified great!!!! but the bank wont budge on the second which is 50k walking away is not an option went to a lawyer and he recommended me to file ch. 13, but the only way i can pay for that is to borrow it form 401k which i pay back to myself on my paychecks, otherwise no way i can do it, and no there isn't enough to in there vested to get me from under the bills and we are behind on the second. will it hurt me that i borrowd the 4000.00 to pay the lawyer to file ch.13?
hi guest,
as far as i know, you may use the money from you 401k account without fines if you are using funds in order to prevent hardship at home. thus, rather than filing bankruptcy, you may use your 401k funds to pay off your mortgage. however, if you file chapter 13 and if there is no equity in your property, then you will be able to strip off your second loan. you may borrow money from your 401k account but if you haven't reached the age of 59 and 1/2 years, then you'll have to pay penalties.
as far as i know, you may use the money from you 401k account without fines if you are using funds in order to prevent hardship at home. thus, rather than filing bankruptcy, you may use your 401k funds to pay off your mortgage. however, if you file chapter 13 and if there is no equity in your property, then you will be able to strip off your second loan. you may borrow money from your 401k account but if you haven't reached the age of 59 and 1/2 years, then you'll have to pay penalties.
my 401k allows me to borrow money i have vested without penalties as long as i pay it back from my paychecks only time a penalty of any kind would happen is if i am terminated from my job and fail to continue making payments or if i am on leave of any kind and don't make payments otherwise no irs involement or penalties... i need a small loan to cover the bankruptcy fees otherwise i cant file, there isn't enough to cover the 50k other wise i would just borrow that but that is not the case. will it look bad if i borrow 4k to pays the fees when i file bankruptcy will they the court give me a hard time about? :?:
You can ask your friends or family members to help you in filing bankruptcy. They may help you in getting the money that you need to pay your bankruptcy attorney.
When I did my chapter 13, my Attorney accepted payment via the payment plan. It was structured so he received his full amount within 6 months, and everybody else was 60 months.