Considering filing - 401k

[Johnny Xspot]

I am planning to file Ch. 7 bankruptcy in the spring of 2004. Do my
pre-tax contributions to my 401k have to be stopped? Are they
considered an expense or do I have to discontinue all retirement
savings? It is only 6% of my salary. Any thoughts appreciated.

 

[deak2u37]

If you can wait till spring...5 or 6 months away it seems you might be
better off not going bamkrupt anyway.....email me if you want a
different suggestion....I have an idea that would probably work for you
..

 

[Gus]

In determining a "substantial abuse" assessment, no payments to 401k
or 401k loans can be used.

There is tons of case law, type "substantial abuse" and 401k into any
search engine to review cases.

http://www.sdb.uscourts.gov/Decisions/2001Decisions/2001 -20 Hefner.htm

I would stop the 401k payments, yesterday.

Also, beware of over-withholding federal tax when you do your budget.