No specific time limit, but tell your attorney about this. You will need to review exemption statutes involved and the requirement to document how the proceeds were spent. I have done this many times with no problems, but you need to understand how do this correctly and an attorney's advice here is very important.
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
No required time to wait, but as Mr. brewer advises, let your attorney know about this.
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
Taking out a loan against your 401K is not a problem, but having the cash from the loan proceeds can be a problem. What did you use the money for? Hope this perspective helps!
1. You cannot discharge a loan from your 401(k). It is not clear if that is your intent, but you should know that fact.
2. The issue in chapter 7 bankruptcy is how much you took out, where the money is now, or what happened to it. Those questions you need to discuss with a local bankruptcy attorney like Dorothy so you can come up with a plan to maximize the benefit of your bankruptcy.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline