Legal Question in Bankruptcy in Michigan
I borrowed from my 401k hardship to pay my balnce owing past due on mortgage. They won'tt accept the money now and have started foreclosure proceedings now i have to file chapetr 13. Will this effect my filing. will i leagaly get in trouble for borrowing from my 401k. Please help i'm worried and don't know what to do.
Asked on 4/06/11, 8:44 am
1 Answer from Attorneys
JASSI SACHDEV
LAW OFFICES OF JASSI S. SACHDEV, P.C.
Depends upon how you withdrew the money. Preventing eviction and/or foreclosure is a legitimate reason for hardship withdrawal. Did you mention that as a reason for withdrawal? If you did and can show refusal letter from mortgage company - refusal to accept mortgage - you should be safe simply because you were acting in good faith.
Contact us for more details - 734-779-1662.
Best - JS
Answered on 4/06/11, 11:49 am
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