Posted on: 14th Apr, 2010 05:44 am
I came into a small amount of money from a settlement ($40.K). I don't want ot lose this to the trustee when I file Chapter 7 in a few months. I was told I could put $20 K into Roth IRA's ($5k each for both my husband and I for 09' and 10') He is not filing with me. Is this accurate?
As long as you make 2009 contributions to the Roth IRAs by April 15th, you could put $20K away. $10K for 2009 and $10K for 2010 (you can make this contribution after 4/15 if you want). I'm not a lawyer, but I do know that your unsecured debt could be wiped out or reduced in bankruptcy, while your retirement funds would be protected from creditors. You should really ask an attorney this question as laws change from state to state and may depend on your individual circumstances.
If I came into enough cash to pay off my unsecured debts and avoid bankruptcy altogether, that would likely be my choice instead. However, I don't know enough about your personal financial situation to make that call.
If I came into enough cash to pay off my unsecured debts and avoid bankruptcy altogether, that would likely be my choice instead. However, I don't know enough about your personal financial situation to make that call.
Welcome zophia,
As far as I know, you should be able to place the money in your Roth IRS account and that amount will be exempted as retirement accounts cannot be garnished. However, I would suggest you to contact a bankruptcy attorney and take his opinion in this regard.
As far as I know, you should be able to place the money in your Roth IRS account and that amount will be exempted as retirement accounts cannot be garnished. However, I would suggest you to contact a bankruptcy attorney and take his opinion in this regard.
Thanks guys. I would love to avoid filing, but my debt is too substantial.