If filing Chapter 13

I think it would be better for you to consult with a bankruptcy attorney and ask him/her.

You can't withdraw funds from your 401(k) without getting permission from your trustee. Secondly, it would not be wise to withdraw funds from your 401(k) account. Your creditors may create a pressure upon you to use that money to pay off your debts.

In answer to your question as to whether or not a withdrawal from a 401k within 6 months prior to filing must be included as "income" for means testing purposes. . .

[QUOTE] STATEMENT OF THE U.S. TRUSTEE PROGRAM???S POSITION ON LEGAL ISSUES ARISING UNDER THE . . . MEANS TEST. . .

Line 7, Pension and retirement income.

Does not include Social Security payments. Includes all other retirement, including government, 401(k), and IRA. [/QUOTE] (emphasis added)

However, there is case law out there indicating that the UST is wrong therefore, the answer to your question will turn on what state you are in, your local UST???s position and any case law there may be in your jurisdiction. As one post states, you need to discuss this with an attny.

In addition, if the withdrawal is in the form of a loan against the 401k, then such would not be "income"

Des.

I think at your age the employer won't make you pay it back which is nice.