Questions regarding stock sales, 457K situation

[psa10]

I have some questions that I'm afraid to ask my own attorney here however here it goes.....

Filed a Ch 13 almost three years ago, all payments and tax return copies filed with the trustee without problems.

When I left my city employment I had a 457K plan that I cashed out that per my attorney was exempt in AZ. During the next year I was involved in an auto accident in which the trustee did not want to take the time to go after as they thought the case was probably not worth their time. Well the case was settled for $325,000.

So I have the $325k and the money from the 457k sitting in my bank. I decided that with the extra money to invest some in the stock market to which I've made thousands of dollars in profits.

When I go to file my 2015 taxes I am going to have to again send these to the trusi, last year I'm required to do so, and the trustee will probably fall over.

Question is this.... I need advice as to how to handle this situation. These funds were basically off limits by the trustee due money coming in from my 457K and the lawsuit settlement.

Can someone give me an idea of what will happen when the trustee sees my $65,000 income and paperwork from the stock sales? I guess I could move to terminate the case early and see if I can get that approved. I'm not sure what to do but if I have those type of funds sitting in my bank I am going to invest to try to make more than the ridiculous bank interest rates.

Opinions please

[LadyInTheRed]

My opinion is that you need to talk to your attorney. Why are you afraid to do that? You pay an attorney so you can get advice on this kind of thing.

Don't count on terminating you BK to hide 65k in income. Don't try to hide any thing. Call your attorney.

[despritfreya]

With that kind of cash just lying around/sitting in the bank why are you not paying your creditors by paying off the Chapter 13?

Based upon your April, 2014 post I wonder if you really told your Trustee about the accident. If you did, and your Trustee said "have at it, I don't care" I sure hope you got it in writing - like an official abandonment.

As Lady states, you need to talk to your attny,

Des.

[psa10]

Yes and this email communication has been obtained by both my attorneys. Would I be able without problems just be able to pay off the remaining payments and put this case to bed?

[psa10]

When the accident happened, my injury attorney contacted my bankruptcy attorney whom then contacted the bankruptcy trustee. The accident attorney advised that the trustee, at that time, would take the settlement and use towards the bk case. When my bk attorney contacted the trustee their office did not want to place a "lien" against the accident case and a copy of this was sent from my bk attorney to the accident attorney so that when settlement time came there would be no red tape in me getting the settlement.

So everything was disclosed to my accident attorney as well as my bankruptcy attorney and everything passed along to the trustees office. Wasn't my fault they did not take the time to look into the accident case claim.

My plan is a 100% payback situation. I just am not going to put these funds into a CD or savings account due to the small amount of interest that I would make so I've been rotating funds into and out of the stock market. I assume I'm legal to do this since these funds have been 100% fully disclosed to the trustee.

[despritfreya]

Your trustee let the claim slide, not because he didn't bother to look at it. He let it slide because 1) you disclosed it and 2) you were already committed to pay 100% of all allowed claims.

Complete your case now. Have your attny contact the Trustee for the "payoff" amount and then send it and move on with your life.

Des.

[sophieanne]

Gosh, my trustee must be tough. I was in an accident in 2012 (during my case) which I discolosed to my bk lawyer who in turn kept in touch with the trustee. I'm in
a 100% plan. When it settled, the settlement info had to be sent to my lawyer/trustee who made a call that they wanted an amount paid in to
my plan. My settlement was no where near the amount in this situation.

[dmc-2008]

Wow! Seems like you should get out way earlier Sophieanne!

[159515951]

Gosh, my trustee must be tough. I was in an accident in 2012 (during my case) which I discolosed to my bk lawyer who in turn kept in touch with the trustee. I'm in
a 100% plan. When it settled, the settlement info had to be sent to my lawyer/trustee who made a call that they wanted an amount paid in to
my plan. My settlement was no where near the amount in this situation.

I assume your plan period is shortened, as you shouldn't be paying more than 100% of your debt. It would be worth a call to your attorney to clarify that.

[sophieanne]

I assume your plan period is shortened, as you shouldn't be paying more than 100% of your debt. It would be worth a call to your attorney to clarify that.

Hi 1495....
Yes that is the case...my plan was reduced by the amount that was given after the accident. Just would've been nice to have been allowed to keep that amount, since I am in the 100 percent plan I just wish there were universal rules that were applied by all trustees (if only, if only).

[159515951]

Hi 1495....
Yes that is the case...my plan was reduced by the amount that was given after the accident. Just would've been nice to have been allowed to keep that amount, since I am in the 100 percent plan I just wish there were universal rules that were applied by all trustees (if only, if only).

You are keeping the settlement, but you're not receiving it until the end of the plan.

[LadyInTheRed]

You are keeping the settlement, but you're not receiving it until the end of the plan.

I like the way you think!

[sophieanne]

You are keeping the settlement, but you're not receiving it until the end of the plan.

I hate it when people are logical..and right .
Thanks for your note.