Legal Question in Bankruptcy in California

Re: 401K Loan - reaffirmation

You can put it as secured and yes...you can always reaffirm!!!

Re: 401K Loan - reaffirmation

Thanks for your posted inquiry.

You can and should reaffirm on a 401(k) loan, as in effect, you are paying yourself. You are paying yourself through a third party, however, and that party is the trustee that manages the 401(k) loan. I don't agree that the loan is secured, as "secured" strictly means that there is a perfected interest in specific property. Whether or not you list it as secured or unsecured, keep making payments -- that is the most important thing. Most trustees have to take payments from you directly, and so a reaffirmation has no practical effect, although it might make both you and the trustee feel better about the transaction.

I hope this answer helps, but if you need more information, have other questions, or feel you need representation, please feel free to email me directly. My email address is [email protected], and I�m happy to help in any way that I can. Best of luck.