BK discharged! Attorney didn't list pension!

[Bella2]

My husband and I filed ch. 7 3/24/11, bk discharged 7/11/11. My husband and I took half Of his pension out after the 180 day waiting period (since he hasn't worked in two years his union allowed a partial distribution). Now I asked our lawyer if this was ok and she said it was but then she said that she didn't list the pension on the bk!!! When we sat down in march of 2011 and went over the assets and debts I asked her about listing my husbands pension and she said we didn't have to. Now I am confused! Was the petition supposed to be listed on the petition or not?

[tobee43]

more than likely his pension was exempt.

[Bella2]

That's what she said. I'm just concerned because she is asking me why it's not on the petition when i told her several times that he had one.

[tobee43]

That's what she said. I'm just concerned because she is asking me why it's not on the petition when i told her several times that he had one.

she's asking??? well your debts are discharged is your bankruptcy closed???

[Bella2]

Yes and my bk was discharged 7/11/11. How do I find out if it is closed?

[tobee43]

i can't swear to my heart, but i really believe you are fine. but why is SHE asking you??? you are discharged but again are you CLOSED???? that is the KEY question here.

there are TWO orders

1. discharge
2. closed

is your bankruptcy CLOSED??? otherwise your trustee may re-consider your case as an asset case. all the other listed creditors may be discharge and unable to collect on any debt you listed, however, if the trustee feels there was any assets they may not close your case and attempt to go after any assets they feel can be used to pay your creditors and unfortunately, themselves.

[AngelinaCat]

A pension is part of Retirement, and is exempt, meaning it can't be touched. Though it should have been listed--and probably was, somehow, because you have to give your total household income, and that pension is part of it.

Now, if your attorney is asking YOU about this pension, you need to run from her as fast as you can. Please say that you are NOT in the Florida Middle District, with the court in Jacksonville, or else I would swear that you were using our INEPT attorney.

Get a PACER Account, if you don't have one, and see if a Close order has been posted. You would also get paper copies of these orders in the mail.

[Bella2]

I don't know if it's closed. She is asking me because I opened a new savings account and the personal banker told me to call her and ask if we were ok to deposit $11,000 into a savings account since we filed bankruptcy. I called her to ask because it made me nervous and she said that there isn't a pension listed on the petition (she said it was exempt) but I told her about it several times and asked her if it was ok to take the money out of the pension and she said it was ok. Now I'm concerned because we got the money out after the 180 days of filing but the pension isn't listed in the petition. She said we would be ok but I am doubting her.

Thanks for your help!!

[Bella2]

He isn't getting his pension on a monthly basis since he is not retired. We were just able to get a partial distribution for one time since he hasn't worked in 2 years. We got this out after the 180 days. Thanks!

[AngelinaCat]

I have read and re-read your initial and subsequent posts. Since this transaction happened AFTER the 180 mark, I think you are okay. However, keep any and all paperwork regarding this to prove that this is an exempt pension fund, in the very unlikely event, and questions are asked.

Do go ahead and get the PACER account so you can find out if you are closed or not. Your attorney should be able to tell you. Good luck!

[LadyInTheRed]

The 180 days you are worried about does not apply to a withdrawal from a debtor's pension.

From Bankruptcy Code Section 541 which defines what constutues the bankruptcy estate:

5) Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date—
(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the debtor’s spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit plan.

The pension was exempt on the date of filing. It should have been listed on the petition as an asset and then exempted. But it probably will not even come up at this point. If it does come up, your attorney can fix it and should do so without charging you. The banker had good intentions, but she caused you unneeded worry.

[Bella2]

Thank you so much to everyone who has responded with helpful info. I registered for my PACER account and I looked at my discharge paper and it says:

"ORDERED that the chapter 7 case of the above-named debtor is closed; that the Trustee is discharged and relieved of said trust"

I am assuming that means that it is closed.

[AngelinaCatHub]

Thank you so much to everyone who has responded with helpful info. I registered for my PACER account and I looked at my discharge paper and it says:

"ORDERED that the chapter 7 case of the above-named debtor is closed; that the Trustee is discharged and relieved of said trust"

I am assuming that means that it is closed.

You are fortunate it is closed. Yes the pension while in the pension fund is exempted, or the payments when retired are. A lump sum withdrawal becomes cash and an asset. Your lawyer did not remember her own words? I would not use her or recommend her if I were you. It was a chance you unnecessarily took. Grats you skimmed by. 'Hub

[Bella2]

Thanks!! When I called her back in September she said we could take that money out and now
She is asking me why it isn't listed!?!?!? I told her about it and she said we didnt have to list it. I used an attorney for a reason.....I should have done more research on her.

Thanks!!!

[tobee43]

Thanks!! When I called her back in September she said we could take that money out and now
She is asking me why it isn't listed!?!?!? I told her about it and she said we didnt have to list it. I used an attorney for a reason.....I should have done more research on her.

Thanks!!!

if she contacts you again about it, i would tell her my bk is closed and discharged. we are DONE and attempting to move on with our lives now, thank you for service ...good bye!