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Chapter 13 Early Payoff Question

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O

OhioJen

Junior Member
What is the name of your state (only U.S. law)? Ohio

Am I allowed to take a 401k hardship to pay off my remaining balance in my Chapter 13. I've been in the plan for 12 months (out of 41) and it's still making my life extremely difficult.
 


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bigun

Senior Member
You need to speak with your lawyer about this. 401K's are exempt assets and, cash is not. If you withdraw from the 401K, you may well see the percent payback to unsecured creditors increase.
 
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