If Chapter 13 payments are now 100%, can I do a 401k hardship withdrawal? 7 Answers as of August 12, 2017

Recently my grandmother passed away and left me a share of her property that was in the form of a trust. I am currently living in that property. The trustee has bumped my payments up to 100% of the claims and he said if I wanted to pay in full with my 401k I'm allowed to. My question is would this qualify as a hardship withdrawal if I wanted to pay in full since my 401k only allows hardship withdrawals.

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Ronald K. Nims LLC | Ronald K. Nims
401(k) plans have many options. One of those options is the terms of hardship withdrawals. So, what's a hardship withdrawal at one employer might not be a hardship withdrawal at another employer. However, even if it's a hardship withdrawal, you'll pay significant taxes and reduce your retirement benefits. Unless you want to be working at 75, I recommend you don't touch your retirement money.
Answer Applies to: Ohio
Replied: 8/12/2017
A Fresh Start
A Fresh Start | Dorothy G Bunce
This does not sound like a well-reasoned decision If you are paying your creditors 100% in your chapter 13, you are actually paying a lot more than 100% because there is a trustee commission added to every payment you make through the trustee. If you can come up with a lump sum of cash to pay off your plan, it is likely your creditors would accept less than 100% to settle with you and your Chapter 13 could be dismissed.
Answer Applies to: Nevada
Replied: 8/9/2017
Law Office of Kimberly Fives | Kimberly Fives
That's a question for your 401(k) plan.
Answer Applies to: California
Replied: 8/9/2017
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
You must check with the trustee of the 401(k) funds.
Answer Applies to: Wisconsin
Replied: 8/9/2017
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I have no idea what your 401k would consider a hardship. Generally taking large sums from the 401k is a bad idea because you get taxed on it (and it puts in higher tax bracket).
Answer Applies to: California
Replied: 8/9/2017
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