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Stock and IRA Question

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CAB in CA

Member
What is the name of your state?What is the name of your state? CA

In all probability I will contact an attorney sometime in August regarding BK as I have a judgment pending.

Before I seek council I need to ask a question that perhaps someone can help me with.

I had to quit working full-time in September 2001 and had to quit paying a number of my bills in October/November 2002 as I was not able to return to work. There are several that I continue to pay. I live on SS Disability and a small ERISA pension from my deceased husband. Where I used to work brings work to me at my home and I earn $152.50 a week before taxes. I believe my SS Disability and ERISA pension are exempt earnings.

My mother is 84 and I am mentioned in her will and she owns a home so I do know to protect myself for the future I will have to file BK.

My question is: In January 2002 I was notified by Prudential Insurance that that the company completed a conversion from a mutual company to a stock company and as part of the conversion they issued stock to eligible owners of the company. I was issued 79 shares which has increased almost 50% since it was issued. Today it is worth a little over $5000.

Can I sell the stock and place $4500. into an IRA at this late date in order to protect those funds from BK? I would be eligible to open an IRA since to do still have a working small income.

Thank you for any assistance.

CAB in CA
 


Ladynred

Senior Member
The stock is an asset you would have to list and the Trustee would likely make you sell it and turn the funds over to him/her. If you cash out now and roll it into an IRA, that would most likely be seen as an attempt to hide assets and a fraudulent transfer, and the Trustee could undo it all and still get the money. If you were to do this, you would have to wait a LEAST a year before filing and that would stick you under the new laws, and believe me, you don't want that !

Talk to a couple of bankruptcy attorneys now, don't wait until August. The new law goes into effect on 10/17.
 

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