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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My wife and I are in our second chapter13, which just started

Resolved Question:

My wife and I are in our second chapter13, which just started in September. Now we are 3 months behind on our mortgage. I want to take the money out of my 401K from my work. I believe I am fully vested. Because part of the chapter 13 is back taxes to IRS and state, can I take money out of 401K and use it for my back mortgage?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

You may withdraw the money from the 401(k) and apply it to your mortgage arrearage only with court approval. You will need to submit an amended Chapter 13 plan.

Best wishes for a Happy and Healthy New Year!
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