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401k loan before chapter 13

401k loan before chapter 13

Sep 17,  · Under section (f) of the bankruptcy code, a k loan cannot be restructured by a chapter 13 plan. In addition, your k loan payment is allowed as a deduction in determining your monthly disposable income (which, in turn, determines how much you must pay your general unsecured creditors over the life of your plan). There isn't any exception for (k) loans. The court can certainly dismiss your chapter 13 plan because you failed to comply with the provisions of the plan. By itself, obtaining an unauthorized loan isn't a guarantee that the court will dismiss your chapter The issue is whether your actions are big enough to affect the rest of the plan. Apr 14,  · The 6th Circuit court of appeals recently ruled that the money that had been going to toward the repayment of the [k] loan must be redirected to a debtor’s unsecured creditors. In other words, if a debtor is paying $ each month to his [k] loan, once that loan is paid back, the debtor must add $ to his chapter 13 payment.

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