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Chapter 13 payoff option-need advice pls

Changed1
New Member

Chapter 13 payoff option-need advice pls

ok, we are 3 years into our 100% chapter 13 plan.  My mother in law is currently living with us (3 years now) and we are renting.  She is elderly and has dementia.  This has been very challenging to say the least but, it's helped us live on less so we can pay on our bankruptcy.  My question is this- we have a 401k that we can take a loan on and pay off our BK early (with trustees permission of course)- but should we? I'm really torn- I want to get away from the MIL cause she's driving us crazy- treats us like little kids and is trying to mother my teenage daughter- too much to explain here but you get my drift- I feel like we are in h---! Anyways if we do the 401k loan then we won't have any money down the road to maybe purchase a house in the future. I'm just really torn, but I can't live like this anymore.  Should we just do the loan and payoff the 13? We will be renters for a few years with little down payment to put down on a house in the future, and no we can't afford the rent without the MIL and pay on our BK. Any thoughts??

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Sebastian503
Established Contributor

Pick Your POISON, one of two choices

"I can't live like this anymore"


So, you have to pick your POISON.


Take a sheet of paper, on the left side Mother-In-Law, on the right side 401k Loan


At the top, list all the undesirable features of both.


Towards the bottom, list the benefits of both.


Sit down with your husband, daughter, and your other offspring if any, and provide them with a copy. discuss this matter and let everyone vent.


Come back one week later, and discuss it again. See where you are ALL at both individually and collectively.


In between both family meetings, ask everyone carry the document around 24/7 and read it at least three times a day at a minimum.


Why, because it is not a trivial decision. You (all) have to literally pick your POISON for not only the next two years, but the subsequent 8 years of rebuilding. This is a Ten Year decision.


Seriously consider all the pros & cons.

 

 


Changed1 wrote:

ok, we are 3 years into our 100% chapter 13 plan.  My mother in law is currently living with us (3 years now) and we are renting.  She is elderly and has dementia.  This has been very challenging to say the least but, it's helped us live on less so we can pay on our bankruptcy.  My question is this- we have a 401k that we can take a loan on and pay off our BK early (with trustees permission of course)- but should we? I'm really torn- I want to get away from the MIL cause she's driving us crazy- treats us like little kids and is trying to mother my teenage daughter- too much to explain here but you get my drift- I feel like we are in h---! Anyways if we do the 401k loan then we won't have any money down the road to maybe purchase a house in the future. I'm just really torn, but I can't live like this anymore.  Should we just do the loan and payoff the 13? We will be renters for a few years with little down payment to put down on a house in the future, and no we can't afford the rent without the MIL and pay on our BK. Any thoughts??


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