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Asked 1/7/2008

Retirement loan default

A couple years ago I took out a loan on my retirement to restructure my finances ... I have been paying back roughly $160.0o per week .. now I find myself in the same boat . accumlitated debt and now my wife is unemployed and unable to contribute towards more debt that has been created. I checked into a possible deferral for some time to get through this. My answer was that I would have to default on this loan and pay penility ..... what could I expect to pay in penilitys if I would have to go this route to avoid collections and or bankruptsy ?

 
 
 
 
 
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Answer 1/1 - Submitted 1/7/2008

If you took an early withdrawl then you pay taxes, plus usually 10%. You should go see a financial planner. Do you know the majority of people who file bankruptcy file 3x in their life. A CFP could get you on a perminant track.

 
 
 
 
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