Legal Question in Bankruptcy in Illinois

I am in the final year of my 3 year chapter 13 bankruptcy. I still cannot pay my bills. I am thinking about changing companys so I liquidate my 401k account and get my bills caught up. Can the court take my 401 money or could i just pay the remainder of my 11 months and be done with my bankrupcty. I pay 150.00 a month now. I am behind on my house payments and car payment etc.


Asked on 11/10/10, 10:07 am

1 Answer from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

You actually have more than one question here, and I'm quite surprised that you have not asked this of your current bankruptcy attorney. First, under Illinois law, the 401(k) money is 100% exempt. So, why you would liquidate it is beyond me. Second, the discharge obtained in a successful Ch. 13 is quite broad, so I don't know why you would want to change that. It seems to me that you might want to consider filing an amended chapter 13 plan to deal with the new arrearages, and also deal with the previously discussed issue. I would note that your time to do so is somewhat limited, as your secured lenders will soon be filing motions to modify the stay provisions of the Code. Good Luck!

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Answered on 11/15/10, 12:28 pm


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