401(k)'s value on Schedules B and C - Which is the correct account balance that should be used - "with" or "without loans"?

Asked 11 months ago - Chicago, IL

When listing your 401(k)'s value on Schedules B and C, if you have 401(k) loans against the account & your plan provider provides you with two kinds of balances, one classified as "Balance with Loans" & the other "Balance without Loans" which is the correct one to use/list? Obviously the Balance with Loans is the higher of the two & I don't want to list the wrong one on either of these forms and have anyone think I'm hiding or fluffing anything. I was thinking it might be the balance with loans amount, but am unsure. I want to report it accurately on the forms & not have an under or overinflated number. I had no choice but to file an emergency CH 7 on my own to stop utility disconnections. 3 hours on phone holding for a legal aid attorney to ask & no one in BCY became available. :(

Attorney answers (2)

  1. Diane L Gruber


    Contributor Level 18


    Lawyer agrees

    Answered . Sch.B should have the "without" figure. Sch.C should have the lower figure after subtracting the loan, and Sch.D should list the creditor. You should not file this petition without FIRST taking it to a bankruptcy attorney for review.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more
  2. Joseph Ryan

    Contributor Level 12

    Answered . Where I practice, we have no limit to the 401k exemption so I generally list it as:
    401(k) through (employer/company) with a balance of $__________.
    401(k) subject to:
    1. Loan 1: $________
    2. Loan 2: $________
    Value listed is net of loans.

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