debtisbadnews Posted September 7, 2008 Report Share Posted September 7, 2008 I am in the process of being approved for a weightloss surgery, I have BCBS for insurance, if approved they will cover most of it, except around $2000, for pychiatrists, dietician visits, meds etc....I am currently in a ch13 and am wondering where I am going to get this $2000. I am thinking of my 401k for a loan or a withdraw. Any advice is welcomed. Thanks! Link to comment Share on other sites More sharing options...
bingo Posted September 8, 2008 Report Share Posted September 8, 2008 You are supposed to get permission from the trustee prior to borrowing money in an active 13. I doubt getting permission would be an issue in your case.Would it be possible to get a loan from a family member with pretty flexible repayment terms? Link to comment Share on other sites More sharing options...
Methuss Posted September 9, 2008 Report Share Posted September 9, 2008 As Bingo says, you likely will have no problem getting permission from the trustee since this is a health issue.But since the other part wasn't answered I'll settle that one. DO NOT TOUCH your 401k. The money inthere is off limits to debt collectors and even the bankruptcy trustee. Plus you'll have to pay taxes and penalties on anything you take out. You'd pay about 40 cents in tax for every dollar you take out. So that means to get $2000 in cash, you'll have to take out $2800. And, once the money is out of the account, it is part of the Estate and has to be turned over to the trustee anyways. Lastly you have to think of the value that $2800 has with compounded interest to retirement. If you are 20 years off from retirement, that $2800 would compound to about $70,000 if left alone in a good growth fund...and even more if you are further off from retirement age.It's a loose-loose all around. Just don't go there. Link to comment Share on other sites More sharing options...
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