I am at a point where I absolutely have to take the small amount of money I have in my 401k. Its a last resort.
My question is, if I withdraw the money, and my 401k company deposits the money into my bank account, should I be worried that creditors will find out I have that money and sue me or levy my bank account? Can they just take it immediately?
(I have about 7 credit cards that have been charged off more than a year ago, the highest amount is about 2 thousand, the rest are $800 or less).
I am between jobs at this time, and I will only be getting between 2K-3K.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.