Question about buying back assets, where does money come from???

[bk2011]

Filed CH 7 2/15/11, 341 meeting 4/7/11, discharge scheduled for 6/6/11

Background:
My husband is self employed in construction and because his equipment and tools aren't titled in the company our trustee wants us to buy back these assets from the bk estate.

Question: Where does the money come from to buy this back? We have a ROTH IRA that we could take to buy it all back, but after we take money from the IRA does the money become part of the estate even if it is after filing??

For some reason this confuses me. We want to buy it back and are willing to take the money out of the ROTH IRA, but we don't want that money to be part of the BK estate. It also seems strange that you are supposed to start fresh, but they want money in order to do that.

I am in MIssouri if that makes any difference.

Thanks in advance!!!!!
Jennifer

[Pandora]

can you not exempt them at all with your $3K exemption in this area? Do they exceed $3K in value? What about your wild card?

MO law doesnt state they must be in the company's name to exempt them - unless I'm missing something ??

http://www.legalconsumer.com/bankruptcy/ExemptionCitationDetail.php?CitationID=1122

[daylate]

I'm pretty sure you can take your Roth $ to buy them back. I would ask the trustee or your attorney. The other tactic which may be dangerous is to call the trustee's bluff and say we decided to to buy them back. See if they would really take them. if they say load 'em up I'm not sure what your option would be then.

I just read the link that Pandora provided and it seems to me she is right , it doesn't say it has to be titled and with wild card that should give you 3.6k to exempt. I'm going to go and read the actual code to see if it is different.

here is the statute right from Missouri http://www.moga.mo.gov/statutes/c500-599/5130000430.htm

Says exactly the same as what Pandor's link says. i think you just solved 3.6k of your problem.

Good luck.

[JackBondLove]

You simply take the cash out of the IRA AFTER the filing date, thereby keeping the funds as an IRA in BK estate. I liquidated a small Roth IRA account to buy back my stuff (~ $5K).