January 18, 2006: Funds in IRA were not "reasonably necessary for the support" of the debtor and any dependent.
That portion of a Chapter 7 debtor's individual retirement account (IRA) which he had not successfully exempted under the "wildcard" exemption statute, in the amount of $16,352, was not "reasonably necessary for the support" of the debtor and any dependent, and could not be exempted under a separate exemption statute for the debtor's interest in a stock bonus, pension, profitsharing, annuity, or similar plan or contract. The debtor and his wife currently had more than $500 per month in disposable income and would be relieved of $77,000 in unsecured debt and all but $6,000 of their total debt as result of their Chapter 7 discharge. Moreover, the debtor and his wife, at ages of 52 and 49 respectively, both had a significant amount of time to rebuild their retirement savings.
That portion of a Chapter 7 debtor's individual retirement account (IRA) which he had not successfully exempted under the "wildcard" exemption statute, in the amount of $16,352, was not "reasonably necessary for the support" of the debtor and any dependent, and could not be exempted under a separate exemption statute for the debtor's interest in a stock bonus, pension, profitsharing, annuity, or similar plan or contract. The debtor and his wife currently had more than $500 per month in disposable income and would be relieved of $77,000 in unsecured debt and all but $6,000 of their total debt as result of their Chapter 7 discharge. Moreover, the debtor and his wife, at ages of 52 and 49 respectively, both had a significant amount of time to rebuild their retirement savings.
