401K vs Bankruptcy

In light of recent events this may not be easy to get now, but I'd imagine if the problem is really a cash flow issue with the delay in the SS, you could probably get some sort of debt consolidation loan based on that. Just figure out how much taking money out of the 401k would cost vs. how much a loan would cost.

I don't know much about bankruptcy, but courts are involved so it probably takes a while. I would think if you had government payments coming to you in less than 3 months that might be something they try and give a piece of to your creditors and then you've gone bankrupt for nothing.

talk to a bankruptcy attorney who specializes in individual cases, but don't set on filing just yet. Ask them whether your 401(k) and SS/pension is exempt under state law and/or the bankruptcy code and evaluate what other assets you have that may be susceptible to execution. It may be worth your while to file. If creditors can't get at your assets though, you might not have to do anything.

Thanks Putty. I am renting mother-in-laws house so I dont own a home. Also am paying for a car that has about 3 years left on it. only assests I have is my 401k and pension from my job.

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Ask them whether your 401(k) and SS/pension is exempt under state law and/or the bankruptcy code and evaluate what other assets you have that may be susceptible to execution

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it is exempt. filing chapter 7 is what you need to do. however, it depends on your personal belongings as they can come for some of those if they exceed a certain amount. anyway, after filing chapter 7, in one to two yrs you will be able to borrow again. the credit card apps will continue to role in immediately after filing as you will be virtually debt free.