Withdraw of 401K in 2004/ reaffirmation

[Diane143]

What is the name of your state?PA

Hello all, I am filing pro se and I am wondering if anyone knows how to list a 401K withdraw that was spent in June of 2004 on the Schedules? Is it considered income for the Statement of Financial Affairs?

Also, can anyone tell me if Pennsylvania is a manditory reaffirmation state? I have a car I want to keep but only by making on time payments. Has anone negociated with the creditor on this issue? Thanks Diane143

 

[Ladynred]

PA USED to require reaffirmation or redemption to keep secured property but the laws have recently changed and they do not require either any more.

The IRS considers the withdrawl from a 401K taxable.. you'd better believe a Trustee will too. If you spent it, you'd best be able to show it was spent for necessities.

 

[Diane143]

Thanks for the reaffirmation info. We emptyed the 401K in June of 2004 before we considered bankruptcy partly to try to keep us out of bankruptcy. It just was not enough. We owe now over 50 thousand and the 401K was 20 thousand before taxes and penalties. We have no receipts for that time period to prove anything. I remember we made a payment or two to all our our creditors to catch up through a CCC agency. Electric bills etc etc. We have no big ticket items but no reciepts for that long ago. I thought the trustee would be more concerned about the last 90 days. What is your experience?

 

[Ladynred]

Yes, the Trustee is interested in the 90 days before you filed, but for a withdrawl that large from a 401K it could come up. The Trustee will want to see your tax return for last year and some ask for the last 3 years or returns. The 401K early withdrawl would have to be reported, he'd see it.

Trustees have the power to look back at your financial transactions for a lot more time than those 90 days. I've heard of cases where the Trustee wanted info for something that happened 4 years prior ! Most of those cases though are because the Trustee suspects something fishy with a case.