filed 9/30/10, waiting for 341 meeting, but can i start a roth ira?

[dirkdigler]

hello,

I have a lawyer and we filed chapter 7 9/30/10. Can I start a Roth IRA? I wanna contribute $3700. Is that safe from the trustee?

[BKHELP138]

I would say a big fat NO ! Where is this money ? Did you disclose this to the Trustee ? Hiding money can be a bad thing. Wait till after your discharge. Unless it is exempt, they can take it. Im not a lawyer so I would call yours just my guess.

[backtoschool]

If you exempted that $3700 as a cash asset, you are free to do whatever you want with it, including putting it into an ira. If you did not exempt the $3700 as a cash asset, then it is the property of the bankruptcy estate and the trustee will be taking it to pay your creditors, so you will not be able to put it into an ira.

[ccsjoe]

backtoschool is right. If the money has been exempted, you can do whatever you want with it. I exempted over 5K as a future cash asset and am using part to go to Disneyland.

[angles]

He wants to start a Roth (payments I assume?). I am guessing the question is can he use income he receives after filing for his Roth? I don’t know of any rules as to why a person could not start one, but I could be wrong. Most people sit tight and don’t do anything different until the discharge to avoid the possibility of securitization by the trustee.