Bankruptsy, 401k and divorce

Asked over 1 year ago - Salt Lake City, UT

Chapter 13 filed, now divorcing. Given half of 401k plus $10,000 in place of monthly alimony. If part of the $10,000 is cashed will it have to go to help pay the bankruptsy. The bankruptsy payment was given to husband to pay in full not the wife receiving the additional money.

Attorney answers (3)

  1. Alan D. Walton

    Pro

    Contributor Level 19

    3

    Lawyers agree

    Answered . You need to speak to a bankruptcy attorney about how you should proceed. You can convert your case to a chapter 7, you could have the chapter 13 split, or you could dismiss yourself out of the chapter 13, as well as continuing the case as is. There are reasons each of these options might make sense, and the answer to your question is somewhat dependent upon which one makes the most sense.

  2. Madhu Kalra

    Contributor Level 14

    1

    Lawyer agrees

    Answered . Need additional information, you should speak with an attorney and evaluate your financial situation given the dissolution of marriage, it will affect income and ability to pay into plan. You may qualify for chapter 7 or continue with chapter 13 or get it dismissed if the outstanding debts are paid by spouse.

    Madhu Kalra Kalra Law Firm 23720 Arlington Avenue, Ste 5 Torrance, Ca 90501 (310) 325-9012 http://www.... more
  3. Brian Crozier Whitaker

    Contributor Level 17

    Answered . No - what one joint debtor gives to another is not additional income with respect to your Ch13 Plan.

Related Topics

Divorce

Divorce is the process of formally ending a marriage. Divorces may be jointly agreed upon, resolved by negotiation, or decided in court.

Dividing a 401(k) in a Divorce

A 401(k) retirement savings account, like other assets owned by a married couple, may be included in a division of property during divorce.

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