Asked in Bankruptcy for Louisiana

Q: In LA. 403b=$10K. Loan for $5K. Is prot prop. NOT listed as secure debt w/no objectn. Chap 7. Aft dischrg value 5 o 10K?

Sorry for all the abbreviations above. I tried to get in the essentials as I am not sure if you see this part. I am in LA. & have a 403b worth apx 1OK. I have a loan against it for 1/2 value (5K). I am filing chap7 pro se. It IS a protected asset, but I am not sure about the loan AGAINST it. The debt was NOT listed with the secure ones and no one (trustee or loan company) objected. When debts are disharged, will I have an account with apx 5K or 10K?

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1 Lawyer Answer
Clark Dray
Clark Dray
  • Bankruptcy Lawyer
  • Broomfield, CO

A: Your retirement loan isn't a debt that you would list in the bankruptcy, because it's money you owe yourself. The consequence of not paying it is that it can be treated as a taxable retirement disbursement.

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