How much do lawyers charge to write a 1-page "letter to prevent bankruptcy"?

I know the only way I would write such a letter is to first review your entire financial situation, including but not necessarily limited to, your total debt, type of debt, how far behind you are on your debts, your income, your expenses. I would need all of this to determine if you will be able to pay your future monthly obligations with a smaller paycheck because of the deduction to pay the 401K loan. If you are at a point where you are falling behind in your credit card debt and you reduce your net income to catch up your payments on the debt, then you may be better served by filing a bankruptcy case. You should contact an experienced bankruptcy attorney that handles chapter 7 & 13 bankruptcy cases and assists clients in work out agreements with creditors when warranted. You need to make an educated decision on what is the best action to take.

It is unlikely you will get a bunch of fee quotes on this site. The purpose of this site is to answer actual legal questions. An ethical attorney will need to independently verify your financial circumstances and so just typing a letter on legal letterhead will not be the only service you will require. In this circumstance, I would ask friends for names of attorneys they have used in your community. Hope this perspective helps!

I would recommend that you get a free initial consultation with an experienced bankruptcy attorney. If you qualify for a hardship 401k withdrawal you most likely qualify for a Ch. 7 bankruptcy and you can possibly wipe out your debt and not loose your entire 401k retirement. If you cash out your retirement account to pay your debts, your credit may still be in bad shape and you would have no savings for retirement.

Withdrawing money from your retirement to pay consumer debt is a big step. Review ALL of your options, including bankruptcy, before doing so. If you experienced a temporary set back and are now back on you feet financially paying off the debt from retirement may make sense. My assumption is that you think bankruptcy is going to have a larger negative affect on you than it actually will. Consult with an attorney before making any decisions. Good luck.