tax refund

[okiemom2008]

we are thinking of using ours to pay the lawyer off and put the rest in a IRA. We are allowed 10k for each year and are still able to use the year 2008.

Does this sound ok?

[StartingOver08]

I know you can pay attorney fees, its perfectly ok.

I looked up bankruptcy and IRA and found this for you:



Here is the link: http://www.************************/...ira-exemption/

But if you have more than $1,000,000 in the IRA - you are at risk! LOL!

[justbroke]

I'm just thinking your may get some gripe from the Trustee by putting the refund into an IRA and then filing. You may want to put some distance (more than 90 days) between filing and that IRA move.

Then again, the Trustee may not care. However, in a Chapter 7, the Trustee will want to know where it went.

Of course, your mileage may vary.

[StartingOver08]

You know JustBroke, I agree with you. In fact, when I started to answer the question (before research...always dangerous) I thought that you could not put funds into exempt assets just prior to filing without having the Trustee all over you.

I expected to see something to that effect when researching the question.

So running across this article about the IRA being ok up to 1 million was a surprise. But, I bet the Trustee would still want to see how many years the debtor had been contributing and was it consistant etc....Maybe Okiemom2008 can come back here and let us know what happens at her 341.