I need some help...

[timber]

Also, instead of outright withdrawing the $$$ from your 401K and taking the tax penalties - look into taking a loan from your 401K. Most plans allow this up to a certain amount and you're borrowing the money from yourself. Of course this only makes sense if you are able to make the payments back to your 401K loan, typically done thru payroll deduction. Best wishes!

[autofly]

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timber wrote:
Also, instead of outright withdrawing the $$$ from your 401K and taking the tax penalties - look into taking a loan from your 401K. Most plans allow this up to a certain amount and you're borrowing the money from yourself. Of course this only makes sense if you are able to make the payments back to your 401K loan, typically done thru payroll deduction. Best wishes!

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Yes, you can borrow from your 401K.  It is a great deal because while you are paying yourself back you are also paying yourself intrest.  You are usually allowed to borrow 50% of your vested ballance.  You can repay it in as many as 5 years which greatly lowers your monthly payment with all of the intrest going right back into your pocket.

Auto

[Anonymous]

I caution you, however, do not borrow from the 401k unless this is going to solve the issue, not simply act as a short term band aid.   

I am not sure you are nearing the bankrupt stage, but please note that you will likely get to keep your house, your cars, most of your home furnishings, clothes, and even some of your savings if you file.  And the 401k CANNOT be touched AT ALL.      If you see that things are getting worse, make an appt with a couple of bk attorneys in your area to see if this is an option or there are other ways out........

[phumanr]

At this point, I would not contemplate messing with your 401 (k) -- this is for your retirement and future. Being out of BK for 2 years, I would never recommend this option. You guys are going to have to be tough as hell on your budget...no shopping, eating out, entertainment, yard sells etc. Either one or two of you should get a 2nd job to pay BOA...you can do it!

Phumanr

[Anonymous]

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****edited by Brammy to remove link to credit repair********

Message Edited by Brammy on 10-15-2007 08:58 AM

Message Edited by Brammy on 10-15-2007 09:10 AM