Legal Question in Bankruptcy in Texas

Terminating Bankruptcy and pulling 401K

I filed for bankruptcy to save my home and unfortunatley my home has been foreclosed on. My credit card debt is a very small amount and I have requested to have my bankruptcy dismissed so I can pay my few creditors on my own. I would like to pull my 401K and use some of it to clear my debt. Can I do this without the court taking my 401k from me? If so, I am currently in the process of having my case dismissed and am not sure if I need to wait until the case is dismissed before requesting my 401k or can I request the funds now during the process of waiting for the judge to dismiss?? My attorneys have infomed me that they filed the request with the court in late May / early June.


Asked on 7/03/07, 6:42 pm

2 Answers from Attorneys
Ross Marlin The Marlin Law Firm

Re: Terminating Bankruptcy and pulling 401K

You can request the 401(k) funds now. The court will not take away the 401(k) b/c it is exempt. However, have you considered converting your Ch. 13 to Ch.7 to eliminate your remaining debts?

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Answered on 7/12/07, 12:27 am
Keith Engelke Law Office of S. Keith Engelke

Re: Terminating Bankruptcy and pulling 401K

Have you discussed these issues with your attorneys? I am confused why you want to dissmiss your bankrupcy if your house has been foreclosed on? It is certainly possible to pay people out of your 401k without dismissing the bankruptcy case.

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Answered on 7/04/07, 12:11 am


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