Need pre planning advise...please

[capamando]

Hello,

My wife and I have finally moved out of denial and into action. We plan to file for Chapter 7 six to 12 months from now. We are going to stop paying our cc and our second mortgage in June so we have several months before the phone calls start. The one thing we need to do to protect our retirement future by adding the max $$ allowed under an IRA from the sale of some stocks. That is the only significant asset that we have and at one point we were hoping that their value would go up enough for us to pay our debts...but the reality is that we have less than we put in and our house is worth half of what we owe and our cc debt is almost 50k. So.... are we going to have a problem moving $$$ from the sale of our stock to an IRA if we wait six months to a year before we file?

I would really appreciate any advise/perspective

Thank You.

[keepmine]

Check your state exemptions.
Some states do have time limits between IRA contributions and filing bk.

[capamando]

Check your state exemptions.
Some states do have time limits between IRA contributions and filing bk.

Keepmine,

Thanks for your reply....... where would I find time limits between IRA contributions and filing BK? I have looked for that info in my bk court website and could not find it!

This issue is really bothering me and the lawyer that I talked to could not give me a definitive time. 6months? three months? two quarterly statements?.

Again, thank you for taking the time to help

[keepmine]

What state are you in?
Just do a google search. Use the term Chapter 7 bankruptcy exemptions in whatever your state is.
You'll find any number of references to the specific exemptions for your state.
You have a good idea. I did it myself but in my research I did find a few states that had qualifiers on IRA contributions prior to filing.

[capamando]

What state are you in?
Just do a google search. Use the term Chapter 7 bankruptcy exemptions in whatever your state is.
You'll find any number of references to the specific exemptions for your state.
You have a good idea. I did it myself but in my research I did find a few states that had qualifiers on IRA contributions prior to filing.

Keepmine,

We are in Florida.

Thanks

[Ann]

capamando, at times I'm reluctant to give out advice if I'm unsure of something but when you say you are going to stop paying on your second mortgage and file for a chapter7 I think that may be a problem. From what I have been told (others here and 2 lawyers) you must be current on BOTH mortgage to file for a 7. If after the discharge you want to settle with the second you can try but only after you have been discharged. If I'm wrong on this please anyone chime in. I am going through a 7 right now and am awaiting my 341 meeting. I know for a fact that both lawyers I retained told me you must be current on both mortgages if you plan on filing. Anyone???

[GWBcasualty]

capamando, at times I'm reluctant to give out advice if I'm unsure of something but when you say you are going to stop paying on your second mortgage and file for a chapter7 I think that may be a problem. From what I have been told (others here and 2 lawyers) you must be current on BOTH mortgage to file for a 7. If after the discharge you want to settle with the second you can try but only after you have been discharged. If I'm wrong on this please anyone chime in. I am going through a 7 right now and am awaiting my 341 meeting. I know for a fact that both lawyers I retained told me you must be current on both mortgages if you plan on filing. Anyone???

Being current on the mortgage is not a pre-requisite to file Ch 7.
You do need to be current on both if you want to keep the house (pay and retain), but if your second is fully unsecured it will not make a difference because they cannot foreclose.

Now if 1st and 2nd are with the same bank, things can get trickier.

[HHM]

Being current on the mortgage is not a pre-requisite to file Ch 7.
You do need to be current on both if you want to keep the house (pay and retain), but if your second is fully unsecured it will not make a difference because they cannot foreclose.

Now if 1st and 2nd are with the same bank, things can get trickier.

To be accurate, it is not that the 2nd mortgage "cannot" foreclose, it is that you are gambling that they won't because doing so is not in its financial interests. However, the 2nd mortgage maintains the legal right to foreclose.

[capamando]

Hello,

Thanks to keepmine, Ann, GWBcasualty and HHM for your input. As far as my second mortgage is concerned, I am in line with HHM perspective. I am gambling that they will not try to foreclose because they will not get any$$$ out of it and they should be spending time and money on people that they can get something out of it. We are planning at some point after my BK to let go of our house and take our home somewhere else.

I am hoping that someone could address my question about moving $$$ from the sale of stocks to my exempted retirement plan and how much time I should allow before I file for Chapter 7.

Thanks again

[keepmine]

Looks like Fl. has no time period between contributions and filing.

http://www.thebankruptcysite.org/exemptions/florida.html

[helpmeout]

capamando, at times I'm reluctant to give out advice if I'm unsure of something but when you say you are going to stop paying on your second mortgage and file for a chapter7 I think that may be a problem. From what I have been told (others here and 2 lawyers) you must be current on BOTH mortgage to file for a 7. If after the discharge you want to settle with the second you can try but only after you have been discharged. If I'm wrong on this please anyone chime in. I am going through a 7 right now and am awaiting my 341 meeting. I know for a fact that both lawyers I retained told me you must be current on both mortgages if you plan on filing. Anyone???

I filed for a 7 and I was not current on my mortgage at the time. The only time you need to be current is IF you need the mortgage payment for the means test or you are planning on keeping the house.