Savings

[Dannmcg357]

I have question about money in the bank, My wife has some money in stocks and savings left to her from her mothers life insurance. If we file bk 7 is their anyway to keep that money? what if she puts it in her daughters bank account and puts some in her IRA?

[JRScott]

Depends how soon you plan to file. If you transfer it to anyone I'd wait at least a year to file possibly 2.

The IRA thing might work but depends, I'd make sure it was exempt in your state before doing it.

[Dannmcg357]

No more advise?

[keepmine]

JR knocked the ball out of the park.
If it's transfered to a family member you may have a fraudulent conveyance on your hands.
Your bet bet is {a} see if it can be exempted or {b} put it in an exempt asset.

Have you spoken with a bk attorney or researched the exemptions for your state?

[Dannmcg357]

Thanks. I really appreciate you taking time to reply to my dumb questions. Yes we have had an initial consultaion with an attorny (1 1/2HRS) but obviously didn't cover all aspects of this. Were in Alabama and the exemption is 3K for each of us, so 6K exemption. But that would be used for her to keep her truck she owns. Im trying to learn as much as I can before I commit to filing, I would avoid it if possible. I guess my question now boils down to this, if the money is transfered to an IRA or 401K would that be considered fraudulent?

[veryclose]

You need to consult an attorney on that question, rules vary. Do not do anything with the money until you have a definite answer.

[canusaybroke]

most states have exemptions for IRA's and 401ks that are ERISA qualified.Call your attorney back and ask him the best thing. If you transfer it to an IRA (if your state exempts them) you may have to wait a year or so before filing to avoid being looked at for fraud...

[Dannmcg357]

Alrite, So my wife has 5K in savings, and 9K in stocks. If we file 7 what happens to that money?

[JRScott]

Largely would depend on what state you live in and the exemptions allowed for the state.