Can I withdraw $$ from exempt IRA?

[marinah]

Can I withdraw money from an IRA before our bankruptcy discharge (we already had our 341), or do I need to wait until discharge?

We need some $$ for everyday expenses (severely underemployed right now) and want to use the rest to put down on a car after discharge. Since the IRA was exempt, is it ok to do this now?

[Brighterdays]

I wouldn't. it might open a can of worms. I was told on here not to,but you should ask your lawyer. the money is exempt so why not save it for later? I am not sure if it opens up your ira to further scrutiny or not, so definately ask your attorney. Better safe than sorry

[marinah]

We don't have an attorney, we filed pro se...but I think we may try to stick it out until discharge. We are just in so much financial distress...paying for food and prescriptions for our family of 5 is nearly impossible right now. But getting rid of this debt is the most important thing -- so we will try to stick it out...

[Brighterdays]

We don't have an attorney, we filed pro se...but I think we may try to stick it out until discharge. We are just in so much financial distress...paying for food and prescriptions for our family of 5 is nearly impossible right now. But getting rid of this debt is the most important thing -- so we will try to stick it out...

If you are filing pro-se, I would try to keep my case as stream line as possible. Kiss(keep it simple stupid) is probably the best advice for you. You can search the threads on here, as I'm sure I've seen that question before. I think, out of boredom, I have read every thread and post on here at least once.

I thought about pro-se, but I am not that detail oriented. Have you read the thread on pro se? it is very helpful, but I found a good, experienced lawyer for $695(referal)+filing fees. You can also try to get a waiver for fees if your situation is pretty dire. good luck

Plus, if I keep responding to your post, it puts it back at the top, and somebody smarter than me may respond

[Floridagail]

I talked to my attorney as I wanted to get married once bkrptcy is over, she told me to do it what am I waiting for, it was after my 341 meeting. She told me file date is the important date snapshot of that day is what matter in the bkrptcy. I took out 6000 from my ira 2 weeks before filing,(to pay attorney and catch up on household bills ) My Attorney told me I should of waited until day after I filed, it was okay with trustee at 341. So I would say to take out for your need for living right now, I am still waiting for discharge my 60 days was up April 10. So it could be long time for closure. Our courts are backlogged.

[gophermn]

If it helps matters at all, I withdrew $$ from my 401K to keep my home. I know there will be people in here saying how that is "soooo bad". Well I agree with them and it was not my intention to do so, but if they wish to send me a fat check then I am all ears.
Anyway - I took about 11K out of my 401K as a hardship and did it before the 341.

[CCCrazy]

I received a settlement from Best Buy for being rear-ended by the Geek Squad and the offer was received and accepted by me on Monday. Thank GOD I called my attorney that day...he said do not sign anything until after our 341, which is TODAY!!!! Wish me luck!!

[TEW]

Can I withdraw money from an IRA before our bankruptcy discharge (we already had our 341), or do I need to wait until discharge?

We need some $$ for everyday expenses (severely underemployed right now) and want to use the rest to put down on a car after discharge. Since the IRA was exempt, is it ok to do this now?

NO you have to wait until you are 59 1/2 leave that money alone. Forget the ramifications with your BK forget the tax ramification what are you going to live on when you retire? SS 1k a month if your lucky and there is SS by then.

[marinah]

Thanks everyone for your responses!

I think we will wait it out on the IRA, to not rock the boat. We may need it to buy a new car after discharge, since we are so far underwater on the car we have. Or hopefully, if my husband finds a new job, we won't have to touch it at all...

[Brighterdays]

NO you have to wait until you are 59 1/2 leave that money alone. Forget the ramifications with your BK forget the tax ramification what are you going to live on when you retire? SS 1k a month if your lucky and there is SS by then.

You don't have to wait till your 59 1/2, you can take it out any time, but you will have to pay the penalty Before then.

I would leave it unless you are like starving, i agree that 401k should be considered sacred and the holy grail of money. It is easy to look at that and say "oh, what would it hurt". Well if you only take out 5k now you lose all that compounded interest over the years. it really adds up.