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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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We have filed Chapter 13. We currently have a 401K loan. My

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We have filed Chapter 13. We currently have a 401K loan. My sister has agreed to lend us the money to this loan off so we can re-borrow and pay off the Chapter 13. Is this legal or even a possibility

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.


 

cfortunato :

Yes - you would be able to borrow money from your sister - either to pay back the 401K or to directly pre-pay your Chapter 13 plan. However, you would first have to get approval from the Bankruptcy trustee.

cfortunato :

Once your Chapter 13 is paid in full, your case can be discharged and closed, and you can then start to re-pay your sister and your 401K loan.

Customer:

We have attorneys retained for the length of the bankruptcy would we have them go to the trustee?


 

cfortunato :

Yes - if you are using an attorney, your attorney(s) would have to contact the trustee.

cfortunato :

The trustee will approve this, because trustees are very much in favor of getting their money and the creditors' money early.

cfortunato and other Bankruptcy Law Specialists are ready to help you