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Taking a Pension Plan Payout During Chapter 13 Bankruptcy, While Unemployed

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  • 01-22-2015, 08:54 AM
    lolita1971
    Taking a Pension Plan Payout During Chapter 13 Bankruptcy, While Unemployed
    My question involves bankruptcy in the state of: Virginia

    Hello,

    I'm in the 2nd yr of a 5-yr Chptr 13 plan; all payments have been on-time except when I was laid off from from job in October. I am on unemployment and there is a possibility of changing to Chapter 7 due to insufficient income to make plan payments. I've been presented an option for a pension plan payout from an old job. While this will help me tremendously in getting back on my feet and catching up on plan payments (if not changed to a 7), I wanted to know if the trustee will take the pension payout and put it towards the plan? My main goal is to get back on track (financially...with a job!) and finish out this plan on-time; my attorney advised me awhile back to not be concerned with paying it off early.

    So again, my question is can the trustee take the money if I choose a pension plan cash payout or monthly payments. I'd appreciate any answers/advice that you can provide.

    Thank you
  • 01-22-2015, 09:41 AM
    llworking
    Re: Chapter 13 and Pension Plan Payout - Unemployed
    Quote:

    Quoting lolita1971
    View Post
    My question involves bankruptcy in the state of: Virginia

    Hello,

    I'm in the 2nd yr of a 5-yr Chptr 13 plan; all payments have been on-time except when I was laid off from from job in October. I am on unemployment and there is a possibility of changing to Chapter 7 due to insufficient income to make plan payments. I've been presented an option for a pension plan payout from an old job. While this will help me tremendously in getting back on my feet and catching up on plan payments (if not changed to a 7), I wanted to know if the trustee will take the pension payout and put it towards the plan? My main goal is to get back on track (financially...with a job!) and finish out this plan on-time; my attorney advised me awhile back to not be concerned with paying it off early.

    So again, my question is can the trustee take the money if I choose a pension plan cash payout or monthly payments. I'd appreciate any answers/advice that you can provide.

    Thank you

    Are you asking if the Trustee could intercept it? I do not think so, not at this stage.
  • 01-22-2015, 09:45 AM
    lolita1971
    Re: Chapter 13 and Pension Plan Payout - Unemployed
    Thank you llworking,

    I have not said 'yes' to the payout, but with the way things are going financially, I might. Yes, I'm asking if the Trustree can intercept it at this stage or any other time. I appreciate your responses.
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