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If you are turning a leased vehicle in as part of a Chapter 13 bankruptcy can you borrow from a 401k to purchase new vehicle?
Mpshms
NEWS ALERT: YOUR IN BANKRUPTCY...YOU HAVE TROUBLE HANDLING FINANCES, You have more debt than you can handle...COMMON SENSE: BORROWING MORE TO GET OUT OF DEBT DOESN'T WORK!
Don't do it, don't do it, don't do it!
Your 401k is exempt from seizure under virtually all circumstances...including bankruptcy. (Example...OJ Simpson, owed a lot to the browns after the won the wrongful death suit....they could take his Heisman trophy, his cars, his future income from autograph signings, etc, etc....and did and continue to. As a judgement, he can't even escape it through BK. But, they can not touch his multi million dollar 401k.)
If you take a loan against the 401k, the money (or the car) is no longer protected...it can and will be taken by creditors...given the opportunity....and since your already in serious financial problems now...so it's highly possible that can come about. Then your left with a loan to pay off, that uses up your 401k....and nothing else. Well, you'll have a big new tax bill and debt, because not paying back the loan of the 401k is the same as withdrawing it...so you pay a penalty and everything becomes income!
Don't do it, Don't do it, Don't do it!
Read the News Alert Again: Making a new debt can only make your problems worse.
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∙ 16y ago
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Can you keep your vehicle if you file chapter 13 bankruptcy?
yes
Can you get your car back if you file a chapter 7 bankruptcy before it is auctioned off?
If the lender is willing to reaffirm the loan with the borrower then the vehicle can be returned. A vehicle is a secured debt and is not subject to chapter 7 bankruptcy laws.
Is there anyway to purchase a new home while still in chapter 13 bankruptcy?
When participating in a Chapter 13 bankruptcy, all major financial transactions must be approved by the bankruptcy trustee. One of the factors the trustee will take into consideration is if the transaction is necessary. For instance the purchase of a vehicle for transportation to a place of employment would probably be allowed. The purchasing of a home might not qualify as a neccessity unless it was an issue of health/safety.
Can you sell a vehicle that was included in a Chapter 13 bankruptcy case and is not yet paid off?
No
Can your vehicle be repossessed after you file Chapter 7 bankruptcy?
No. But they can ask to be excluded from the bankruptcy. Usually a deal can be made with the lender to keep a vehicle. If it is covered by the exemption and the borrower lives up to the contract agreement.
In my chapter 7 bankruptcy I have received a Motion for Relief from Stay and Abandonment on my Vehicle. Are they taking my vehicle?
That's a pretty good indicator of their intent.
If planning to file chapter 7 bankruptcy California when is the time to voluntarily give back vehicle?
Ask the attorney that is filing your Chapter 7 case.
Will you lose your vehicle or house by converting from chapter 13 to chapter 7 bankruptcy?
Probably there are much more chance that you will be loosing your house and vehicle by converting from chapter 13 to chapter 7 bankruptcy. There is a $25 conversion fee that has to be paid to the court. Depending upon the status of your chapter 13 case.
Can you pay your car loan off while its included in your bankruptcy?
If you are in a Chapter 13 plan, you have to get permission to pay off a vehicle or sell a vehicle that is included in your plan.
You are financing a vehicle but you can no longer afford payments what can you do?
Talk to the lender, or you can file Chapter 13 Bankruptcy to lower the payments where you can afford them.
What happens if car dealership files bankruptcy how do you pay for vehicle?
If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.
Can you keep a car and car loan presuming you make payments on time and still file chapter 7 you have less than 1K equity in vehicle?
Yes, as long as you do not include it on the bankruptcy, at least in Florida. * The vehicle exemption that is allowed by either federal or state law determines whether or not the vehicle can be excluded from bankruptcy action.
