Assets - savings, transfers, etc...

[mojomonkey]

my girlfriend is in foreclosure and may have to declare bankruptcy to avoid $70k+ in mortgage debt. what can she do to protect her savings? bank accounts are non-exempt, but is there something she can do to make it safe? move it to an IRA / 401k? are transfers of this sort ok? how far back in bank account history will be scrutinized?

thx!

[whipster1]

Depends on the state where she is located to see what kind of exemptions are available. Any $$$ transfer will be scrutinized, so she needs to see a COMPETENT BK attorney to see about her options. It may be a case of spending down that money on necessary items. Again, she can see many attorneys for a free consult.

[mmenz22779]

401k, ira are exempted.

One thing you can do depending on how long you wait is to put the money in a Roth IRA. in a Roth IRA you can withdraw the contributions with out any penelty.

but if you file to soon they may question where that money went. Each state if different, heck each trustee is different. Some may ask for 2 years of bankstatements and some may not ask for any.

you are taking a risk doing that. The best way is to spend it on things you need to live off of.

You can also go grociery shopping and get cash back, get gas and get cash back, ect... you get my point, Plus the bankstatement will show that as a living expense.

instead of going to the food store and spending 100, then going to the atm to withdraw 100, spend 100 at the food store and get cash back for 100. all your bankstament will show is that you spent 200 at the food store.

Now is this eithical? well to each thier own.

[hereforinfo]

Whether or not she can file ch 7 will also depend on her income and expenses.

[Sham11801]

I think the banks have caught on along with the courts. The bank statements will not reflect the cashback amount on your statement. Most of the banks have already upgraded their systems to reflect this. If youre questioning wether hiding assets is ethical or not, then I think you've already answered your question. Unethical and illegal.

401k, ira are exempted.

One thing you can do depending on how long you wait is to put the money in a Roth IRA. in a Roth IRA you can withdraw the contributions with out any penelty.

but if you file to soon they may question where that money went. Each state if different, heck each trustee is different. Some may ask for 2 years of bankstatements and some may not ask for any.

you are taking a risk doing that. The best way is to spend it on things you need to live off of.

You can also go grociery shopping and get cash back, get gas and get cash back, ect... you get my point, Plus the bankstatement will show that as a living expense.

instead of going to the food store and spending 100, then going to the atm to withdraw 100, spend 100 at the food store and get cash back for 100. all your bankstament will show is that you spent 200 at the food store.

Now is this eithical? well to each thier own.

[backtoschool]

401k's and ira's are exempted, but expect to be grilled by the attorney for a last minute transfer into the ira, and since they can't get that money, they will look very very closely at every other expense and asset.

Also, since there is a "totality of circumstance" clause that would allow them to dismiss your case, putting a large amount of money in an ira just before filing would run the risk of making the trustee assume you could afford a chapter 13 plan, since you would have had money to pay your creditors if you didn't put the money in an ira. So, while they won't be able to take the money out of the ira, they will look at all your other expenses and assets and question whether you could have funded a chapter 13 plan if you didn't put the money in the ira.

Trustees may look at bank statements and transfers going back two years, so they will see the deposit into the ira.