My question involves bankruptcy in the state of: NY
My question is this: I filed for Chapter 13 a month ago and I would like to get money from my 401k. It is not a loan because I will not have to pay it back. I just have to send them a proof of hardship and they will give me about 60% of my 401K without having to pay it back. Can I do that? Do I have to get permission from the trustee?
Also, my lawyer told me that I had to stop contributing to my 401k plan because it is money being taken out from money that could have gone to the creditors. Is that true?