My question involves bankruptcy in the state of:Illinois . We have been faithfully paying our chapter 13 payments for 41 months. We are paying 32% back to the unsecured creditors. We called our attorney prior to my husband getting a job offer because He had a employment deduction balance that was incurred before we filed bankruptcy that his employer gave him so we would not have to pay interest on our car and was a condition of his employment. That was verified thru the pay stubs that were included with our filing papers. My husband would have to pay back $1900 last week on his final pay check. That chunk out of his check would hit us hard so we contacted him to find out what to do and also possibly pay off the Bankruptcy if we didn't owe 100% because we would have access to our 401K money and be able to pay the Trustee if it was what we currently owe which is $7400. We specifically told our attorney that we would be only getting around 17000.00 after the tax hit and could not pay off 100% . we figured if we could do that we could pay the trustee of settle with his employer be able to pay our rent etc and not be behind because of the hit on our paycheck. Our attorney told us that the loan was not a problem becuse it was a condition of his employment and we would NOT have to pay off at a 100% because we have been in the plan for more than 36 months as long as we paid the Trustee in full there would be no issues with taking our 401K.. So when he got the job offer we contacted her by email and told her per our conversation we want to go ahead and ask the trustee for a payoff and we will not roll over our 401K. She said it would take a few weeks we waited and got a devastating letter in the mail from the trustte stating that her recoreds indicate $21,315.59 is needed to pay off the case and is being given at 100% and they are advising the debtors attorneys that they have provided 100% payoff figure. We ripped our attorneys heads off on an email, no resopnse yet. But now we have our 401k money out and have about 15000.00 . What is going to happen will they throw us out of the plan .I am really worried. We just wanted to pay our debts and be free. Sometimes I feel like they dont want to you to payoff anyone they make it so hard. I think jail would have been easier. We go 10 steps forward and 20 backwards. I feel like this mistake we will never be free of no matter how hard we try.

