What would you like to do?
Can you legally cash out your 401k while in chapter 13?
Answer All major financial transactions must be approved by the chapter 13 BK trustee.
I have done this more than once. I believe it took me abt 2 weeks to get the check. But this will probably depend on whomever your 40lk is being managed by. There is also a 30…% fed tax penalty if you don't meet the age requirement for withdrawl. 20% is taken up front and the rest you are resp for paying. Also need to ck state/local... If you are still employed with the company, you may not be able to do this. You need to check your company policy. Unless you are in complete dire straits, I don't recommend doing this.
Yes, but if your income will be too low to make the plan payments along with your other monthly expenses, you will have to amend your plan, if possible. Talk to an exper…ienced bankruptcy lawyer
You would need court permission- and i doubt you would get that.
While in a chapter 13 how much cash are you allowed to deposit in a secured credit card savings account?
I would check with your lawyer. Different states have different guidelines to how much you are allowed to deposit. In the state of Virginia you have to notify the trustee for …anything over $500.00 While you are in a chapter 13 you can contribute as much money as you want. Like a chapter 7 a chapter 13 is a snapshot of what you were going through on the date you filed. What you do after that is your business. You can save as much money in the bank as you like, buy a new car with cash, and open a secured visa with a $5,000 deposit. There are certain things you cannot do without the approval of a trustee such as buy a home, finance a car with a loan, contribute to 401K and make purchases on an unsecured credit card. I got around this by having my mother open a credit card account with bank of America and ordering an additional card with my name on it. I have a credit card with a nice limit and 0% APR. I am not responsible for the bill and it does not appear on my credit report. I just have full access. I am currently building my credit with two secured visa's one from First Premier and American Pacific Bank. I think it will be a lot harder to do things like this when the new laws are passed later this year.
Sure. May I suggest you consider the benefits of marrying someone rich?
What if you do not do as legally directed by any court or judge? And in this case, as YOU went to them and asked for their protection under BK laws, and they are wo…rking to resolve your failure to perform on agreements and pay...your going to have a pissed off Judge/administrator too. The keast they would do is drop/dismiss your case. So all the creditors come and get everything they can, and some would say deserve. BUT - a very real thing here....the doing of what your suggesting is about the stupidest thing financially anyone can do. Your 401 is protected from seizure, for use in BK or otherwise. The money taken out will not be...it will be taken and used to pay the debts you have, by the creditors. That will leave you without the asset, and as the BK can't discharge the secured loan you made AFTER the BK filing, you will still have the debt to pay back to the plan. Consider, really, your apparent success (or lack thereof) in handling financial things, and apparent inability to understand what the effect of what our doing is, really indicates you shouldn't consider trying to outsmart the system. That is almost laughable. Make sure you take the legally required financial training courses for anyone in C-13.....you need them as a start.
There is no limit to the amount of cash you are legally allowed to carry. However, if you are stopped for another reason, and the police discover that you are carrying a lar…ge amount of cash, they may suspect you of some criminal activity, such as involvement in the drug trade. Additionally, if you are robbed, there is no way to recover the cash. For security purposes, it is best to deposit the cash in a bank account or use traveler's checks.
Yes, with court permission.
You can cash out your 401k, but you could possibly face severe tax implications. When you cash out a 401k plan, you usually pay ordinary income tax on the amount, plus a 1…0% penalty. Sometimes this can result in a charge of over 40%!
The penalty is normally about 10% of the money you pull out. Additionally, you'll have to pay taxes on that money. Finally, you'll miss out on potential gains by not having …the money in the market. I wouldn't recommend cashing out your 401(k) early unless it is for a dire emergency.
401K money is protected from the bankruptcy trustee. So, I would not touch it at all. ans The only thing dumber financially than doing what your are suggesting is to take a… loan against the account. YOU NEED PROFESSIONAL HELP WITH YOUR SITUATION IF YOU DON'T UNDERSTAND WHY!
No. You can only convert the 13 to a 7.
No you can't it will be almost impossible to do so don't try to.
You may have the option of converting to a 7. Although the court could decide you are capable of paying back your debt via 13. You are in a better position of keeping a car an…d home in 13 than 7. Unless you cannot reaffirm the loans, and the lender is calling in the property. They would still have that option in a 7 also. You can file a Chapter 7 (or another 13) after 70% of the plan payments are completed.
How can you refinance your home for a lower interest rate while in a chapter 13 bankruptcy if you do not want to pay off the bankruptcy and do not want to 'cash out'?
Answer While participating in a chapter 13 the petitioner cannot refinance, sell, transfer or otherwise real property without receiving permission from the… bankruptcy court/trustee to take the action. Therefore the issues cited are not relevant until/unless permission is granted.
401k probably not...that basically just personal savings...which would reasonably come with funds after you pay others you owe. Life insurance, may be a needed life ex…pense, depending on your situation and could be a basic living cost to be made.