retirement fund & 341 meeting

[charande2014]

Great News: I got my date for my 341 meeting set.

Now for my dilemma:

Background: a worked at a company that required a mandatory deduction from my pay that went into a mandatory teachers retirement fund. Unfortunately/fortunately I was not their long enough to become fully invested, so 90 days after leaving the company I am eligible to request a refund back for all my contributions minus penalties & taxes.

Issue: I was just informed by my lawyer that my 341 meeting is roughly the same week I am eligible to request the refund. I understand that at the 341 meeting they can and may ask me some question about my finances and I'll answer truthfully but I was not planning on disclosing these funds since i am not eligible for them until I formally request them in writing. They will remain the retirement fund. Until I request them formally, they do not belong to me.

I was planning on using this "refund money" to live off while I continue to both look for a job and wait out the time until discharge

. My question, is how long AFTER THE 341 meeting shall I request thet refund? 1 week, 1 month, what? Please advise.

[justbroke]

Please ask your attorney. The money is exempt right now because it is in a retirement account (if you exempted the money and the exemption is accurate for your State). I do not *think* that taking the distribution would make the money property of the bankruptcy estate, but I know nothing about your case and the quality of exemptions that you claimed.

Also please understand that what you will have is a distribution. It *may* be subject to the 10% penalty for taking the distribution and it may be taxable if it was funded with pre-tax dollars. These are things you need to consider and ask your attorney. That $2,000 401(k) may only be worth $1,000 if you take the distribution. You will need to personally run the numbers.

(I'm actually concerned that you write that you are "not planning on disclosing" the 401(k). That should already be in your petition on your Schedule B as personal property! You *should* have exempted the amount using an exemption. If you did not tell your attorney about this 401(k)... you need to do that tomorrow and you will likely need to amend your petition!)

[despritfreya]

Couldn't say it any better than JB.

Des.

[charande2014]

Gave all the info to my lawyer, and his response was do not worry about it, take the money out after yoru discharge. Funny thing is I dont know if i can wait that long because I was planning on using the money to live off while I wait out the post 341 time. The only other option is to get a bs part time job to make ends meet while I get through discharge.

[LadyInTheRed]

If you are unemployed, why are you not already looking for a job, bs or not?

[avengers]

From another post in this board, it seems that she's under the impression that she can't work until she gets a discharge.

(See http://www.bkforum.com/showthread.ph...-post-341-life )

[charande2014]

Yes that is correct. I am under that impression. It's not like I have a lot of experience in this matter. I don't want there to be any last minute surprises or hiccups. Yes I want another job but if waiting is better for me regarding me getting a discharge, I'll wait. If having a job won't make a difference, then I'll start actively looking. Can someone with ACTUAL KNOWLEDGE & EXPERIENCE care to speak to the issue regarding having a job before the 341 meeting? My main concern is if I found a great paying job, then that would be problems with my ch 7. I initially wanted a ch7 bu made too much income, but since my job ended, and haven't found another I became eligible for the ch 7 which is where I am at currently. I have my 341 meeting soon and want to be able to get through it without any last minutes gotchas, hiccups, oh by the ways.

[avengers]

I already answered you in the other thread, but yes, you can 100% get a job before the 341 meeting. A chapter 7 bankruptcy is a snapshot of your finances the day you filed. (Your attorney has already filled out forms based on your income on the day of filing.) They will not care at all if you got a job before the 341 or before the discharge.

For some reason you don't seem to believe me, so just send an email to you bankruptcy attorney asking him the same question.

[LadyInTheRed]

avengers is correct. I have no personal experience, but am confident it is true and that your attorney will give you the same answer. There have been bkforum members who got a job before their 341. When the trustee asked them if anything changed since they filed their petition, they said that they got a job, the trustee congratulated them, wished them luck and recommended discharge.

[charande2014]

It is not a matter of belief it is a matter of knowledge. This board has been a goldmine of info and until the question came up I did not know the answer. Now that I do, I will adjust myself accordingly. Understand I am converting from a 13 to a 7 so that is why I assumed that it would not be in my best interest to get a job. After all I had a job but was above the median income. My fear is that I found another job that pays just as much or more and the trustee ask me if I am employed and I answer yes and ask me how much and I say $$$ they will then deny the 7 and put me back into a 13 which is where I cannot afford to be, hence me filing a conversion from 13 to a 7.

avengers is correct. I have no personal experience, but am confident it is true and that your attorney will give you the same answer. There have been bkforum members who got a job before their 341. When the trustee asked them if anything changed since they filed their petition, they said that they got a job, the trustee congratulated them, wished them luck and recommended discharge.

[LadyInTheRed]

It is not a matter of belief it is a matter of knowledge.

I'm not sure where that is coming from. You seem a bit defensive. Both Avengers and I are trying to help you based on our knowledge of BK. Neither of us is an attorney. I've done a lot of reading on BK, on this board and other places and by reading the bankruptcy code and federal rules of bankruptcy procedure. My posts are based on my experience and my knowledge, not belief. Unfortunately, I don't have the time to back up my every answer with citations. Know that when I am in doubt about something, I say so.

You didn't say in the first place that this is a conversion, that could change things, but I very much doubt it. You converted on the day you filed your conversion. You are now in Chap 7 and your filing date is the conversion date. But you are right to question what some stranger tells you on the internet. When in doubt, ask your attorney. That's what you pay him for.

[charande2014]

Please do not accuse me of being offensive, because that is not the case. THIS BOARD AND EVERYONE ON IT HAVE BEEN EXTREMELY HELPFUL (YOURSELF INCLUDED) and I am grateful. Please do not read into my words. Words have meaning to me so I try to communicate exactly what it is that I mean.

I use this board because it is fountain of information that I find very helpful. Yes I can ask my attorney and I do but I also used this board to supplement my knowledge to get a better understanding of things I need to know, should be asking about , etc. etc. So with that, let's all move on.

Thanks to everyone and their input regarding my questions

I'm not sure where that is coming from. You seem a bit defensive.