If you do that, then you’re using up your retirement funds. THEN what? I’m sorry you used as much of the funds as you did, because 401K funds can’t be touched in BK.
Realistically, how long do you think you hve in your current house. Use every one of those days to try to find a rental house with accessibility. You might also try contacting local charities, since they may have a network in place to help. You can even contact your local news consumer reporters for help.
Anyway I can see you were really in debt and the BK was probably the way to go for you. Albert doesn’t say never do BK he says try other things first but sometimes, very rarely someone will have to BK to start over. You tried and you were in too deep. The important thing is to deal with it and move on and NOT get back into that situation again.
I don’t know the 401k thing. I think I heard someone say that you will lose a portion of what you have to fees or something, so make sure you have that figured it to your plan if it’s the case.
I know Albert says do not use your 401k for things but in your rather unique thing I can see how you are thinking. Buy the house, have no mortgage and get to the other things faster. And the need for the handicap house adds to the issue. I know in our part of VA there are very few places to rent, even apartments that are handicap ready. Most of the apartments are in those assisted care things for the elderly.
The idea with the steps in order is that you need the BEF to be a security net to catch those little bills that sneak up on you, then you have to get out of debt to have money, then more EF to be able to NOT get back into debt, then the stuff you will need later (retirement & kids college) and then the house. Its more behavior modification and learning but if you are not taking a major hit with the 401k to get the mortgage, it might be best for you. You are in reality moving your investment from 401k to real estate.