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Category: Legal
Satisfied Customers: 17252
Experience:  14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney
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Filed for Chapter 13 with my husband in 2011. We are now divorced

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Filed for Chapter 13 with my husband in 2011. We are now divorced and I am getting his 401K. I need to cash out a portion of it to live but I dont' want to do it if I will just end up owing the money back to the debtors. Nothing is changing in our bankruptcy, as he has agreed to take on all of the plan payments. Please let me know what the best thing to do in this situation is.

WALLSTREETLAW : Hello I am a licensed attorney. I am here to help answer your questions. Please do not hesitate to ask for clarification
WALLSTREETLAW : This is a common matter, you should not cash out the 401k before the bankruptcy as it can be taken,
WALLSTREETLAW : you can consider taking money out after the chapter 13 is confirmed but not at this point,
WALLSTREETLAW : Since you filed in 2011,
WALLSTREETLAW : you may only have a few years left in your chapter 13 so taking small amounts from the 401k would be fine,
WALLSTREETLAW : however, taking a large amount could make the creditors come after you,
WALLSTREETLAW : You can consider a 401k loan, as an option,
WALLSTREETLAW : but a lump sum would be risky.
WALLSTREETLAW : If you have any further questions please do not hesitate to ask.
WALLSTREETLAW : If satisfied please provide us with positive feedback, thank you
Customer: replied 4 years ago.
what would small amounts be considered? I would probably end up putting it into an IRA, do those do loans like a 401K does?
An IRA would not do loans, in terms of small amounts a $1000 a month should be fine
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