My coworker just told me if I close the 401k and take the distribution which isn't a loan, then I don't have to repay it. I just have to pay the penalty and the taxes.

Are you saying that is not the case?

Kevin

Me 36, W 37
M: 08/02/97
D13, D9
1st Bomb 02/08
Reconciled 04/08
2nd Bomb: 09/08
W filed for D 02/04/09
Separated 03/09
D dismissed 06/09/09
Still separated...