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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15868
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hello, my Chapter 13 was filed in Aug 2010 and I am almost

Resolved Question:

Hello, my Chapter 13 was filed in Aug 2010 and I am almost done making payments. In 2012, my attorney's office closed and my "case" was referred to another attorney. However, that attorney wishes (sort of understandable) to charge me for his services despite the fact that I paid 'in full' for by bankruptcy with Attorney #1. I really don't want to travel that path again unless absolutely necessary. I need advice on two topics - withdrawing money from my 401K and purchasing a new vehicle.
My 2001 Saturn is currently Blue Book(ed) at $1000 and I've put $1100 into it since last fall. I've just been informed by my mechanic that it needs a radiator replaced for another $400. I am not going to repair it. I've now put more money into it than it is worth.

I'd like to withdraw (under hardship) from my 401K, but I'm not sure if I can. I cannot get a loan because I already have 2 outstanding loans with them due to replacing a washer/dryer combo, a water heater, and a furnace in my condo. (A lucky break would be so awesome, right now)

What are your thoughts and what do I need to tell the Trustee? I am in Littleton, CO

Thanks, XXXXX XXXXX
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 1 year ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

In terms of your chapter 13, if you are going to withdraw money from your 401k for the purchase of a new car, that would not be a major issue in your chapter 13, as the case is almost paid off,

Customer:

Ok. So, I don't need to notify the Trustee? Or I do...?

WALLSTREETESQ :

How much will you take out?

Customer:

Well, I haven't picked a specific amount yet. I am thinking about $15000. I've just started to look at car options.

WALLSTREETESQ :

how many months in your plan do you have left?

Customer:

I make my last payment in Aug 2013 and I just made my March payment, so 5 months.

WALLSTREETESQ :

It would be best to wait till August if possible,

Customer:

Yes, it would. Unfortunately, my mechanic is telling me that my car won't make it that long.

WALLSTREETESQ :

the reason why is if you take out the $15,000 the Court will require permission, and the creditors or trustee may require you give some of that money to the plan,

Customer:

Oh, I see

Customer:

I was afraid of that

Customer:

What about a lesser amount? $5000?

WALLSTREETESQ :

Since you only have a few months the trustee should approve the transfer $5000 is different, and if you can show the need for it due to the car, it should be no problem,

Customer:

Ok. Thank you.

WALLSTREETESQ :

Good luck, and if you have any further questions please do not hesitate to ask.

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15868
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

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