Retirement Plan

[sheenasmom1]

Well, we have picked a lawyer and we are trying to get together all the information to proceed with a chapter 7. My concern is that they want his retirement fund information and how much is in it. Can they take any/all of his retirement fund?

A few other questions if you don't mind. We had put his name on my checking account about 4 months ago, intending to have his direct deposit switched over. We never got his direct deposit switched over and now aren't going to until this is all done. He doesn't use our checking account either and doesn't have an ATM card for it. I also have a savings account with about 5,000 that I have been keeping for a vacation with my kids. His name isn't on it and never has been but I have transferred money to our checking account to pay my bills. My question here is, will the courts try and take my savings account money to help repay his debts? My savings account was started before we ever added his name to the checking account. Now I am worried.

One last question. My husband and I bought a old used truck together in order to haul stuff around. It's worth about 2,000 and paid off. He still has a car that he is making payments on. He wants to keep the car but would have to reaffirm it. I would like to see him have a "good" vehicle but am not sure the courts will let him keep both, even though the truck has my name on it too. Will they take the truck, or make him give up the car or neither? I am so confused with all of this stuff and we can't call and make the appointment with the attorney until we have all of our stuff together. That should be tonight or tomorrow.

Thanks in advance for all of your help and sorry for the long post.

[SinkingFast]

Welcome to the Forum, Sheenasmom!!

First,........... If this is the only attny Consult appt you have, make at least 2-3 more with different attnys. Get different perspectives. Meet more than one attny. Find THE one you'll be comfortable working with.

I'm guessing from your post, your Hubby is looking at filing BK alone??!! You won't be filing Joint??!!

If that's the case, and your Savings Acct is an entirely seperate entity,......... Seperate from your "joint" checking acct,.......... Your savings should be safe. If only your name is on the acct, the savings will not be part of Hubby's BK.

Generally speaking, retirement monies are protected under the BK Code. Interests in IRA, ERISA, Keogh, or other pension or profit sharing plans are expressly protected but must be disclosed.

"Retirement funds that are tax exempt under sections 401, 403, 408, 408A, 414, 457 and 501(a) of the Internal Revenue Code are exempt from claims of the debtor's creditors. Money rolled over from a pension into an IRA is also protected. However the law limits protection for funds in regular and Roth IRAs to $1 million, although this cap can be increased by the bankruptcy court."

http://bankruptcy-law.freeadvice.com...ment_plans.htm

About the vehicles,.......... The old truck, you hold half the equity as it is Titled in both names. The big question is,............. How much vehicle Exemption does your State allow for?? And, in the Exemption, is there a specific statement that says 1 vehicle per licensed driver?? Then it falls to how much equity does Hubby have in the vehicle he's making payments on.

[Spartan]

If you claim state exemptions, the amount is of IRA exemption may be capped at a lot lower than $1mil.

[SinkingFast]

If you claim state exemptions, the amount is of IRA exemption may be capped at a lot lower than $1mil.

Good point, Spartan!

I looked at our State's exemptions and that particular Statute defers to the IRS Code as quoted above. That may not be the case in all States. So be sure to check your State's Exemptions.

[sheenasmom1]

Retirement

Thank you for the responses. Sorry I haven't responded sooner. Flu is running rampant here.

Anyway, yes my husband is filing alone. The checking account is joint but my savings account has NEVER been joint, but is at the same bank. Should it still be safe?

I know as far as the car my husband is paying on, he still owes about 3800.00 on. I don't know how much equity is in it. I will have to check into that. That was a very good point. Thanks.

We did get the list of "required documents" from this lawyer but that doesn't mean we have to stick with him. We wanted to be prepared with what we need first, then do our consults. So far though, everyone we have talked to says the lawyer we got the information sheet from is a complete jerk, (to women anyway), but he is the best in town when it comes to BK. They say he doesn't mess around, gets the job done, and doesn't charge as much as the high priced, "best name in town" attorneys. I did check with the higher priced attorneys and they did charge for a consult, 100 for one and 150 for the other. Of course they are in the same building too. Go figure. I am still going to call around to a few other places today and see about free consults with other lawyers. You're right, we need to make sure we do this with someone we are comfortable with.

Thank you so much for all of your help. Coming to this board has been one of the BIGGEST stress relievers in a long while. Especially since his ex-girlfriend, (the mother of his little girl), is now making "threatening" remarks in text on his phone about how much he is changing and he had better be careful because "some" people may react to this in a manner he doesn't like. Part of his debt problem was incurred for her oldest daughter who wanted a new car, (he cosigned), a boob lift, (he got the loan for her), and she's high risk car insurance on her own so he put her on his policy for a heck of a lot cheaper. Problem is this girl doesn't pay him back, AT ALL! She has left him to pay all of this. He was so vulnerable and well, he knows he made some big mistakes in the financial area with them but we are trying to correct those together now. They just don't like it because he has now given her a month to find her own car insurance, and has advised them about the BK. They aren't happy. Thanks so much all for your advice.