Withdrawals from retirement accounts do not count as �income"

[ssdsco]

My BK is on the shelf for another year so I'm not in touch with my attorney. Does anyone know if this applies across the BK world to all cases or is it up to the local trustee/district ?

http://www.************************/...in-bankruptcy/

I'm retired taking monthly IRA withdrawals for support that put me over the means test. Currently I'm planning to do a lump sum withdrawal 7 months before filing and no withdrawals in the 6 months leading up to BK7 allowing me to pass the means test.

Thanks

[Help!]

The US Trustee included money received from *all* sources in the six months before filing in our case, including the lump sum we took from our 401K. The presumed abuse route is not one I would want anyone to take, although we managed to make it through the process. We were asked for a full year's worth of financial statements, so the lump sum withdrawal may still affect the case trustee/US Trustee's perception of your circumstances even if it isn't directly included in the income calculation.

[ssdsco]

The US Trustee included money received from *all* sources in the six months before filing in our case, including the lump sum we took from our 401K. The presumed abuse route is not one I would want anyone to take, although we managed to make it through the process. We were asked for a full year's worth of financial statements, so the lump sum withdrawal may still affect the case trustee/US Trustee's perception of your circumstances even if it isn't directly included in the income calculation.

[AngelinaCat]

You aren't the only one who thinks that this stuff is 'made up' on the fly.....

[Help!]

So true. And the means test, which was supposed to "standardize" the Ch. 7 process, has really made things murky. If only we were eligible for the sort of help Fannie Mae and Freddie Mac are getting. Friends in high places...

[HHM]

Based on that article, that specific ruling would only apply to BK courts in the 8th district.