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Can I access my money in 529 Education Account ?

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    Can I access my money in 529 Education Account ?

    The way I was explained is that in Chapter 7 bankruptcy debtors' estate becomes administered by the trustee for the duration of the bankruptcy case.
    I am not discharged yet even after more than 60 days after 341 meeting (hopefully getting there), but I need the money in that account to pay for my son's college.
    Do I need to ask trustee's permission to use those money?

    Note: proof that the 529 account is indeed an education account was asked by trustee and provided by me. So no doubt here.

    Thank you,
    SP
    Ch.7 filed: 2/23/2011 Discharged: 7/7/2011 Asset: Yes Case Closed: 7/30/2013

    #2
    OK, it seems that nobody knows the answer to the previous question.
    I hope this is easier:
    I got my discharge on 07/07/2011, case still open.
    Can I take the money out of the 529 account now?
    Ch.7 filed: 2/23/2011 Discharged: 7/7/2011 Asset: Yes Case Closed: 7/30/2013

    Comment


      #3
      The funds in the qualified 529 account ARE NOT property of the estate to the extent that those funds were not placed within the account within 1 year prior to the filing (there are some other limitations but I have yet to see them apply). Any funds placed into the account within the 1 year prior to filing belong to the Trustee. So, if you did not add to the account within that 1 year period the Trustee has no interest in the $$. To be absolutely sure, ask the Trustee.

      Des.

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