I am on disability I want to withdrawal my 401k I already had taken a loan from it 6 months ago so they tell me they cannot give me my 407k unless I resign, is that legal or is there a way to get the 401k ?

Most plans do not allow in-service withdrawals, so in all likelihood you would have to resign from your company to take a withdrawal. Your plan administrator should be able to clarifythe rules for you. You should also be aware that if you do resign from the company the balance of the outstanding loan would automatically be reclassified as a withdrawal (assuming you don't repay it within 60 days), which means you would have to pay income taxes on that amount, as well as the early withdrawal penalty (unless you are permanently and totally disabled).