Our home is in Foreclosure. We previously borrowed money from husbands 401k, but were unable to keep up with payments due to income & career change. I recently started a new job. We would like to take out funds again from 401k to restructure but were told husband would have to quit job in order to receive money because of our failure to repay first 401k loan . We really would like to keep our home and feel confident that we can re group if given the chance . Any suggestions ? Some one recommmended we file for chapter 13, is it to late ?

Your husband's 401k should have nothing to do with his job and vice versa if he wishes to take more money out of it, he can as it is HIS money to do with as he wishes. His employer has no say really in the matter. Reask someone in charge about another loan on the 401K if that will indeed save your home. Provided, of course, if there is money left in the account to take another loan. He may have to go the route and close the account to get at the money still remaining. You'll just have to pay the penalties for early withdrawl and start another 401K all over again.