Avoiding Bankruptcy

[GBALLENTINE]

What is the name of your state (only U.S. law)? GA
I LOST MY JOB LAST YEAR DUE TO A MEDICAL CONDITION WE ARE IN SERIOUS DEFAULT ON CREDIT CARDS AND TWO REPOS ALSO OWE UNCLE SAM. WE HAVE THE POTENTIAL FOR THE MONEY IN MY HUSBANDS 401K BUT WE DO NOT KNOW HOW TO GET THE MONEY OUT THEY ONLY ALLOW A HARDSHIP FOR CERTAIN THINGS AND THESE ARE NOT COVERED. WE WERE ABLE TO GET THE MONEY TO STOP FORECLOSURE ON OUR HOME BUT THAT WAS ALL. IS THERE SOME WAY FOR US TO GET THIS MONEY OUT OF THE 401K RETIREMENT AND PAY OFF THESE DEBTS TO AVOID FILING BANKRUPTCY? AND IF NOT IS THERE A BANKRUPTCY THAT WOULD INCLUDE OUR HOME AND CAR ALONG WITH THE OTHER DEBTS?

[nrknlknek]

I would recommend speaking wth a competent BK attorney. Based on the limnited information here, BK may be an alternative to keep your home (assuming you can make the payments), possibly the car (depending how much equity is in it) and protecting your 401K.

[Ladynred]

Do NOT touch that 401K, it is protected in a bankruptcy and cannot be taken - and you're going to need that 401K. If you take out the money, you'll have additional tax liabilities.

If the taxes you owe were for returns that were FILED, and they are more than 3 years old, they may be dischargable. If not, then you need to seek out a taxpayer advocate to help you.

In your situation, bankruptcy is likely your best option for protection, talk to an attorney ASAP.