401k payout during bankruptcy

Discussion in 'Credit Talk' started by Jude60, Aug 2, 2002.

  1. Jude60

    Jude60 Member

    We went to lawyer to start bankruptcy. I quit my job and went on SSD in March. I have $2,000 in a 401k that he said that I should just cash it out. Will that be considered income and that the money should go on bills? Isn't 401k's exempt? I forgot to ask him and would like to know. Do I report that I received a check?
     
  2. Butch

    Butch Well-Known Member

    WHAAAT????


    Oh Paleeez. lol

    What do YOU think?
     
  3. GEORGE

    GEORGE Well-Known Member

    NOT AN EXPERT...but I think the 401k can stay where it is...

    YOU HAVE TO PAY TAXES ON IT IF YOU TAKE IT OUT!!!

    You MIGHT do this...take it out for $400 in taxes leaving $1,600 to pay down the debt...so you have $1,600 less debt to BK...BIG DEAL!!!
     
  4. cable666

    cable666 Well-Known Member

    No. In fact, open an IRA and fund that too.

    Get a new lawyer. I would't trust one that stupid.
     
  5. Jude60

    Jude60 Member

    I know all about paying the taxes and all of taking it out. But that still leaves the answer to what my question was, which I didn't get. I'll just wait till I talk to him. Thanks for your opinions.
     
  6. clc18940

    clc18940 Well-Known Member

    jude60,
    I think you are a TROLL....first you post and say you have a summons from CITY HALL...hahahaha...too funny. Then you go on to post later that you don't have an appt with an atty till 8/6...I might be in a time warp but where I live today is still only the 3rd!!!! Then you say your atty advised you to cash out a protected exemption in anticipation of bk...I suggest if you are going to TROLL with this idiotic drivel that at least you learn enough not to sound like the IGNORANUS that you are !!!!

    Forget about continuing to TROLL here...we creditnetters are WAY TOO SMART FOR YOU CA DUMMIES!

    clc
     
  7. Butch

    Butch Well-Known Member

    I agree Carole,

    In my first post I Said: WHAAAAT? LOLOL

    Then I asked her what she thought. Her reply: never mind I'll just ask the same atty. LOLOL

    I held back as much as I could and it was hard.

    Few on this board would be stupid enough to believe that an atty. so advised this young lady/man, whatever.

    It was a maddeningly(sp) accurate exposure of the intellect we're dealing with.

    (Patting myslef on da back)

    :)
     
  8. drmgirl6

    drmgirl6 Well-Known Member

    Hi pulse, we've missed you the whole 10 mins you were gone. LOL.
     
  9. clc18940

    clc18940 Well-Known Member

    I must give credit where credit is due....the TROLL award this weekend goes to.....tah DAHHHHH (poor attempt at drum roll) hunka hunka, hubba hubba, lollapooliza legal researchin', manly man himself BUTCH CFP. A warm round of applause please. Butch please come to the podium and accept your award.

    "SPEECH SPEECH SPEECH" roars the crowd!
     
  10. Butch

    Butch Well-Known Member

    Thank you, thank you, (bowing).

    No atty. in his right mind would advise a person to liquidate a protected asset and apply it to bills, just prior to a BK.

    No troll in his/her right mind would so imply. LOLOL

    Financial Planning 101.

    :)
     
  11. breeze

    breeze Well-Known Member

    401k's are exempt. Leave the money alone. Where did this guy get his law degree? Collectors University for Creditor's Attorneys?


     
  12. clc18940

    clc18940 Well-Known Member

    Breeze,
    Of course you are right and so is Butch and so am I yet on another thread I get flamed for yelling the "emperor has no clothes". This poster is obviously a troll or else he/she would have revisited this thread.

    Despite the criticisms... I will in concert with other well informed people on this board out the obvious trolls. Not that I won't give people the benefit of the doubt but when they post like jude60...cash in 401K's in anticipation of bk...I cannot and will not stay silent despite my critics.

    I stand by my statements that there is enough correct info on this board to keep a newbie busy for weeks...so to filter out the worthless advice or false stories is as valuable a help as a proactive post on how to validate.

    JMHO,

    clc
     
  13. KHM

    KHM Well-Known Member

    I not defending anyone here but seeing as I know NOTHING about BK's OR 401K's or IRA's or anything of that nature, if *I* were to post something like this would *I* be considered a troll????

    Ever since pulse and collector1 (who I mistakenly gave the benefit of the doubt too) were here we all have our guard up. We are accusing THEN asking questions.

    If *I* was accused of being a "troll" I would NOT respond to the post either. Why? You already have it set in your mind that I am a troll so why bother defending myself to the "group". I would feel not wanted and move on.

    The only stupid question is the one not asked. Furthermore, there may be HUNDREDS of newbies that haven't posted yet for fear of wording their post wrong or thinking it may be a stupid question or fearing they may get labled as a "troll"

    The "trolls" will out themselves in time, they will make it painfully obvious that they are only here to DISRUPT the board. Afterall it took a 100 or so posts for us to figure it out about Pulse, now we can determine it off of just 5 or 6 posts????
     
  14. Dani

    Dani Well-Known Member

    KHM, I totally agree with your post. :)

    Dani
     
  15. Butch

    Butch Well-Known Member

    Actually so do I.

    I do believe we should work to give everyone the benefit of the doubt. I'd rather let 5 trolls in here than to chase one innocent person away who needs help.

    If we let these people post, it's only a matter of time before they out themselves. I just do think I'm right in this particular case. We shall see what happens next.

    :)
     

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