What is the name of your state? Pennsylvania
My husband and I filed for Chapter 7 on May 14, 2004, we are still waiting for the date for the creditors meeting.
In our paperwork we were required to list retirement plans, insurance and such. We each have had plans at previous jobs - which we took lump sum pay-outs for when we left employment (and we also listed those on the petition), however, each account was left with a amount that we were not allowed to have until we retired. Recently my husband's plan notified us that since the account has been inactive for so long, we either have to roll the amount over to another (which he doesn't have) or take a lump sum payout. We're only talking $4500.00 and we realize there will be penalty fees, however, we could use the money to pay off my parents (who paid our taxes this year) plus a stove we are reaffirming the debt on. Since are BK is kind in between filing and court date - will we have to turn this money over to the trustee? If we don't receive the money until after court...do we still have to turn it over.
Although I've noticed on several postings that retirements are exempt, our attorney kind of made this sound as though it wasn't so. He said the court couldn't make us withdrawal the retirement if the penalty was 10% or more (which they are). But now since the one account is kind of forcing us to, how does this affect everything? Or should we just not mention it?
s the name of your state?
My husband and I filed for Chapter 7 on May 14, 2004, we are still waiting for the date for the creditors meeting.
In our paperwork we were required to list retirement plans, insurance and such. We each have had plans at previous jobs - which we took lump sum pay-outs for when we left employment (and we also listed those on the petition), however, each account was left with a amount that we were not allowed to have until we retired. Recently my husband's plan notified us that since the account has been inactive for so long, we either have to roll the amount over to another (which he doesn't have) or take a lump sum payout. We're only talking $4500.00 and we realize there will be penalty fees, however, we could use the money to pay off my parents (who paid our taxes this year) plus a stove we are reaffirming the debt on. Since are BK is kind in between filing and court date - will we have to turn this money over to the trustee? If we don't receive the money until after court...do we still have to turn it over.
Although I've noticed on several postings that retirements are exempt, our attorney kind of made this sound as though it wasn't so. He said the court couldn't make us withdrawal the retirement if the penalty was 10% or more (which they are). But now since the one account is kind of forcing us to, how does this affect everything? Or should we just not mention it?
s the name of your state?