Last August I filled out the paperwork for a chapter 13 and started the process. I have been unable to make the monthly payments to the Trustee and the 13 has been discharged. Two weeks ago I received a call from an attorney who is trying to collect a debt for a cc company. I made arrangements to take the first $1256 out of my 401K (this is all l have available) and will have to come with this same amount for the following two months. As I spoke with the agent in regards to getting $ out of my 401K, she told me that this $ could not be taken if I went into litigation. I am wondering if I should do this or not. First of all, I don't know how I will come up with the next two months $, I do not own a house, I owe past due payments on my truck but I do have automatic deposit into my bank account from my job. What can they do to me in regards to litigation?
Any advice is greatly appreciated.
Thank you!
clcowan

THey the attorney to put everything in writing, do not speak to them on the phone never, in writing only.

THey the attorney to put everything in writing, do not speak to them on the phone never, in writing only.

The attorney said he sent a letter to me, at a very old address. He is now suppose to fax a copy of the letter to me. Is a faxed letter considered a contract. Is speaking to his accounting department a contract?

The attorney said he sent a letter to me, at a very old address. He is now suppose to fax a copy of the letter to me. Is a faxed letter considered a contract. Is speaking to his accounting department a contract?

faxed letter = yes it is a contract

speaking verbally to accounting department NEVER DO as there is no proof, just their word against yours.

Since I don't think I can make the other two payments, should I get the $ out of my 401K and pay the first payment and see what happens, or should I let it go to litigation?:confused:

Did you not say that the clerk told you that no one can take your 401K?

401K can't be garnished. So go to court, let them take everything you have (which my guess is not much if you don't even have a house).

Don't give up your 401K... use that for your retirement. Is is your retirement account right?

Yes, it is my retirement account.
Thank you!
clcowan

Your welcome.

Don't take any money out of it. Tell that lawyer to go find some other poor sap to suck dry.

Are you sure you aren't a psychologist?
You just made my day!
Thanks so much!:p