Adversary Threat Question

[gello]

Well, it is officially over. Was discharged today after 84 days. Not proud of how I ended up this way, but I can assure you it won't happen again and I am looking forward to a fresh start. Glad I did not reaffirm my house, as we intended to keep it, but things are not great in my marriage right now and I am not sure how that will end. Glad we won't be on the hook for the house and try to sell it and take a bath on it as we are about even with the loan and worth of it.

[keptdigging]

Bullying is the right perspective. A few kids are so big or naturally intimidating that no one will bully them. Most of us need friends to have our back. In this context that's what a lawyer is.

I used to think that life really was Junior High... but maybe it's really 4th grade!

[HHM]

justbroke,

Many thanks to you and others who have given me advice and support. At this point in the process I feel comfortable going pro se but will put my trust in our lawyer. You never know what may come up where her expertise could save me from a lot of hassles. I will share more as I move through the process.

Thanks

If you are going to do what you are contemplating, it is best to have a lawyer. Reason being, if you do those kinds of transfers, and file BK pro se, there is a good chance the trustee will try to bully you into turning over the assets since the trustee will assume that you won't be able to manage a sufficient defense on your own.

[capamando]

capamando, what you just wrote, might just work! I'm also glad to see that you have done your homework and know that at 58 you can contribute $6K to a Roth IRA because of the age and allowed accelerated payments.

justbroke,

Many thanks to you and others who have given me advice and support. At this point in the process I feel comfortable going pro se but will put my trust in our lawyer. You never know what may come up where her expertise could save me from a lot of hassles. I will share more as I move through the process.

Thanks

[justbroke]

capamando, what you just wrote, might just work! I'm also glad to see that you have done your homework and know that at 58 you can contribute $6K to a Roth IRA because of the age and allowed accelerated payments.

[capamando]

I wouldn't recommend transferring to the HSA, the law isn't settled on that yet. But transferring to a Roth IRA is fine, so long as you do not exceed th $5,000 per year cap.

Also, how much money are we talking about?

HHM and justbroke

We are not sure probably the max allowed, which in our case is 11k (6k for me and 5k for my wife). The remainder 5k or so we plan to pay our car insurance in full, estimated federal taxes(self employed), much needed dental and medical expenses, life insurance for the year...nothing extravagant just plain basic needs of life.


Thanks

[justbroke]

something that will be critical to us in the not so far future. I am 58 years old.

Actually, and don't quote me on this, but I believe that when you're at that age... 58... the amount you can contribute is slightly higher. My employer has something with 401(k) -- a different retirement plan than the Roth -- where we can accelerate payments after a certain age as we approach retirement. I don't think it will be that significant, but would allow you to save a little more.

HHM is right on the money... pun intended.

[capamando]

Too many factors to list. It really depends on several things including your particular State's exemption laws. If it's a lot of money, the Trustee may see it as an attempt to hide money from creditors -- especially if it's done in anticipation of bankruptcy.

Now, you "may" end up in a fight with the Trustee and you may actually win. The key objection to the exemption will be that you were trying to hinder the collection or obstruct creditors. In most cases, converting any non-exempt property (like money) into an exempt property is okay because it's specifically allowed. I've only read a couple of Florida cases on this matter and both were found to be "okay" that they converted non-exempt property to exempt property.

How your specific State and District deal with this will be... well... specific to your State and District.

For you, if your creditors haven't already attempted to get at the brokerage account, then I personally don't see an issue of conversion since you're not hindering anyone.

Justbroke,

You are a real trooper, always willing to help the scared and confused . We lived in Southwest Florida and we are just now at the point of stopping payments to creditors including our 2nd mortgage. We were not planning this move (like many others here) and as a matter of fact we even returned 45k to our 2nd mortgage lender. We could have easily kept it......so all we are trying to do is put the $$$ into our retirement... something that will be critical to us in the not so far future. I am 58 years old. Of course it will be up to the trustee....

Thanks

[HHM]

I wouldn't recommend transferring to the HSA, the law isn't settled on that yet. But transferring to a Roth IRA is fine, so long as you do not exceed th $5,000 per year cap.

Also, how much money are we talking about?

[justbroke]

So... if we sell stocks from an individual account brokerage and transfer the $$$ to our Roth IRA or maybe a Health Savings account six months prior to filing would this be an issue for the trustee?

Too many factors to list. It really depends on several things including your particular State's exemption laws. If it's a lot of money, the Trustee may see it as an attempt to hide money from creditors -- especially if it's done in anticipation of bankruptcy.

Now, you "may" end up in a fight with the Trustee and you may actually win. The key objection to the exemption will be that you were trying to hinder the collection or obstruct creditors. In most cases, converting any non-exempt property (like money) into an exempt property is okay because it's specifically allowed. I've only read a couple of Florida cases on this matter and both were found to be "okay" that they converted non-exempt property to exempt property.

How your specific State and District deal with this will be... well... specific to your State and District.

For you, if your creditors haven't already attempted to get at the brokerage account, then I personally don't see an issue of conversion since you're not hindering anyone.

[capamando]

AP and the transfer of stocks to a Roth IRA

Hello to all,

I have tried to get some advice on this issue but perhaps this is a better thread for it. I would consult the lawyer that I will probably use for our Chapter 7 but she will be out of town for a week and we are in dire need to start the process. So... if we sell stocks from an individual account brokerage and transfer the $$$ to our Roth IRA or maybe a Health Savings account six months prior to filing would this be an issue for the trustee?

Thanks

[gello]

Well, I have waiting awhile to post anything in fear of jumping too fast, but it looks like I am in the clear. Nothing has shown up on my PACER and it is still saying "awaiting discharge." My lawyer told me it takes generally about a month for them to discharge it. I didn't think it would be that long, but in NH, there is probably less employees dealing with it and there were a lot of cases when I filed. I will say the whole thing was quite nerve wracking, but I am glad it is over, although not final. I guess my lawyer knew what he was talking about from the start, unless he let out a collective sigh as well. He did seem a bit surprised that Chase did not respond any after their last phone call together when he requested the BTs in question. Thanks for everyone's help on here. While I am not proud that my financial situation had come to this, I am looking forward to a new start and not repeating the same mistakes. Best of luck to all.

[keptdigging]

By local do you mean in LA. Because I could see the drive to the IE being plenty of disincentive to file suit.

After all it's the corporation's money, but the attorney's time spent in traffic!

[ryan]

You were not a "classic case". :-)

..and I was.

Catleg you correctly predicted awhile back I would be sued by Chase...based on the type of letter I had received....and you were right (almost to the day)!

Now, can you tell me what Lotto numbers to pick?

[catleg]

ya know out of all my cards, Chase was the most quiet, and i had about 5 cards. for me the ones to go to legal were in this order, GE money, Citi, B of A, Crap 1. i was worried about Chase since they have local attorneys, but i hardly heard a peep.

You were not a "classic case". :-)