B
Ben Skrewd
Guest
What is the name of your state? Georgia
Do my wife or I have a viable case?
We reside in the State of Georgia
Incident happened in February 1999
I had signed a form pledging my 401(k) as collateral for a couple of loans, but the forms said I could withdraw that pledge at any time.
I had excepted a early retirement from my former company and was told by my Credit Union said since I was leaving my former company I had to pay off all my loans upon separation of employment.
Fearing my credit union would seize my 401(k); I sent a certified letter with return receipt confirmation a letter withdrawing the 401(k) as collateral to my former company. Included was a request for them to send me my 401(k), which included a notarized signature of my wife’s consent as required. Return receipt shows they received in December, 1998.
Two months later in February, my former company sent my 401(k) proceeds to my credit union against my wishes disregarding the revocation of collateral rights.
My Credit Union paid off all unsecured loans to them and them paid down the secured loans leaving me with a balance I could not immediately pay off. When I received notice I called my credit union and requested they return money to my former employer or release it to my full control. My Credit Union refused to return money to my former company or to release it to my full control. They did agree to payoff one of the secured loans and charged it to my unsecured credit card. This was not my wish but I agreed under protest. Because of not being able, to go through with my plans I could not meet my financial commitments and am contemplating filing for bankruptcy.
I believe my wife has more rights than I do as she never gave consent to use the 401(k) as collateral as required under 26 USC Sec 417.
She was also not a party to any of the loans yet was threatened with legal action when I refused to pay my credit union any money for the remaining balance.
&
Do my wife or I have a viable case?
We reside in the State of Georgia
Incident happened in February 1999
I had signed a form pledging my 401(k) as collateral for a couple of loans, but the forms said I could withdraw that pledge at any time.
I had excepted a early retirement from my former company and was told by my Credit Union said since I was leaving my former company I had to pay off all my loans upon separation of employment.
Fearing my credit union would seize my 401(k); I sent a certified letter with return receipt confirmation a letter withdrawing the 401(k) as collateral to my former company. Included was a request for them to send me my 401(k), which included a notarized signature of my wife’s consent as required. Return receipt shows they received in December, 1998.
Two months later in February, my former company sent my 401(k) proceeds to my credit union against my wishes disregarding the revocation of collateral rights.
My Credit Union paid off all unsecured loans to them and them paid down the secured loans leaving me with a balance I could not immediately pay off. When I received notice I called my credit union and requested they return money to my former employer or release it to my full control. My Credit Union refused to return money to my former company or to release it to my full control. They did agree to payoff one of the secured loans and charged it to my unsecured credit card. This was not my wish but I agreed under protest. Because of not being able, to go through with my plans I could not meet my financial commitments and am contemplating filing for bankruptcy.
I believe my wife has more rights than I do as she never gave consent to use the 401(k) as collateral as required under 26 USC Sec 417.
She was also not a party to any of the loans yet was threatened with legal action when I refused to pay my credit union any money for the remaining balance.
&