I have had to turn to my 401k plan for help. My wife has become disabled causing us to lose income, as well as extra medical bils and housekeeping expense , baby sitting and eating out often. I had to file bankruptcy chap 13 and now I would like to take 401k and pay it off. I have 2 401k loans and ample money in 401k to satisfy those loans and discharge bankruptcy, clear all debt and start over. My automobile just died (a.k.a. work transportation) and I have enough money in 401k to purchase a dependable used one. The trouble is they won't let let me have the money to purchase work transportion, they won't let me pay off the loans which would ease payroll deductions, they won't let me have it to payoff bankruptcy and maybe finance a car, and I can't get financing as long as I am in bankruptcy. The ironic thing is if I am fired for absenteeism(no transportation) , I can cash it (401k) all in and also take my company pension plan in lump sum (worth
thousands) Why does it have to come to this? Any feedback?
PJS

While I can sympathise with your situation, it ' comes to this' because a retirement plan is just for that purpose - retirement.
In addition, the govt has given a tax break as well, so they stick to their guns.
You did not indicate if your plan allowed for hardship withdrawals. That is the only scenario in which the govt says you can override the situation. it is actually recognized hardships may occur. Are hardships available?
not to take anything away from your circumstances which sounds rough, my experience has been that a hardship in some people's mind is that the neighbor has a new 'boat' or other toy, and the govt tries very hard to prevent people pulling retirement money for these things. and then, as it turns out, these are the same people who complain the most at retirement that the govt should turn around and give them an even bigger hand out.
my prayers that your problem can be resolved soon!