Q: Completed Chp 13 and received discharge of debtor letter from court. If need 401k for unexpected things would I be ok?
I filed a chapter 13 bankruptcy in the western district of Missouri. I have completed my plan and my trustee submitted the completion of plan payments with the court and already stopped wage garnishments. I also have already received my discharge of debtor letter from the federal court. I need to take a 401k loan for some unexpected auto repair expenses. Is there a certain length of time I need to wait before I can do this or would I be OK at this point.
A: Once you have your discharge you are good to go as far as getting a 401(k) loan (or other loan for that matter). Wisdom may indicate not taking a loan against your only retirement account, but legally it is allowed.
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