In California is an IRA counted against my wildcard or not?

[tsharpe1992]

I am in California. I was about to file a Chapter 7 petition today but because I would lose too much due to how assets were calculated I did not file. My attorney stated that my Roth IRA of $9000 would be subtracted from my $25,000 wildcard exemption which would leave me with $16,000 remaining on the wildcard exemption.

Because of other assets totalling $20,000 + the 9,000 IRA, I have a total of $29,000 in assets. When you put the $25,000 wildcard into the equation, it looks like this $29,000 in assets - $25,000 wildcard exemption. The Trustee would be able to take $4000.

As I am asking around, I am finding out that my attorney could have incorrectly told me that the IRA would be counted against my wildcard but my financial advisor showed me a statement that according to the new bankruptcy law that IRAs are exempt.

Is there anyone who might be familiar with Chapter 7 bankruptcy in California and whether or not IRAs are exempt or not so that I can bring it to my attorney's attention.

[2manybills]

From what I understand, it has to be a "ERISA" plan and then it does not fall under the "wildcard" but is exempt in CA.

[justbroke]

From what I understand, it has to be a "ERISA" plan and then it does not fall under the "wildcard" but is exempt in CA.

I think this is correct for California. The key is whether it's ERISA, but California System 1 certainly covers it. System 2 is questionable.

[2manybills]

I know for us there was a question, because I have "pension plan" at my work that we cannot contribute to. We used System 2 and needed our wildcard for my husband's tools (he's a mechanic) and a car that we have about $7K in equity in. My pension has about $52K in it. So I had to confirm that it was an ERISA plan, which it was (Thank God!)