IRA in CH7

[AnnieG]

We've recently filed CH7, but haven't had our 341 yet. We got a letter today that, since my husband was no longer working for the school system, that he would be receiving his retirement fund contributions ($5,200). We did not think he was eligible for anything since he was not vested, so this came as a surprise to us. We would like to roll this into an IRA, but what is the impact given our situation? Can we roll this to an IRA? If we do not roll it over, then 20% will be taken out, as well as early withdrawal penalties. My husband is no longer working, so he can not automatically transition to a 401K, so we would have to open an IRA or some other retirement fund.
Advice?

[chucko]

Definately roll it into an IRA. That way it will be exempt and you won't lose 20%.

[AnnieG]

but, since this was not expected, we did not list this amount on our BK petition. Will it be OK to do this and then add it to our petition as an IRA? We do not have the funds, so this may take awhile to get the funds released and put into an IRA....it may not happen before our 341.
I just don't want to get into any "trouble" for getting a new IRA and funding it with $5,200 just before the 341.
Input?