ANSWERS: 3
  • Assuming you're not retired, you will have to pay a penalty for withdrawing early in addition to the deferred taxes due on your 2007 return.
  • Yes. you should have listed the 401K as an asset in the beginning of your bankruptcy. once the court discovers that you have not been truthful, they may cancel your bankruptcy plan, altogether. You need to contact your attorney, pronto!
  • If your case is still open (a chapter 7 usually stays open for 5 months before you receive a discharge) then you have now hidden assets and are preferentially paying insiders. This is fraud. You may be fined $5,000 or spend up to 5 years in jail. Call your attorney.

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