Bankruptcy exemptions vary from state to state, but everyone gets an exemption of ~$1.75 M for money in an IRA. It’s part of the Bankruptcy Code (section 522(n)) that applies to all filers, wherever they live. The exemption covers both classic, before-tax IRA’s and Roth IRA’s that are funded with after-tax dollars. Roll-overs into an […]
Search Results for: exemption planning
The Secret Bankruptcy Exemptions
Exemptions in bankruptcy are all about what you keep. Exemptions define the collection of assets and rights that are safe from the reach of a bankruptcy trustee or your creditors. But planning exemptions in a bankruptcy case is more than just the looking down the list of things you keep through bankruptcy and the dollar amount […]
Why Some Chapter 13 Payments Are A Heavy Lift
Why do Chapter 13 plan payments end up too high to pay if Chapter 13 is supposed to be a financial reorganization? How are plan payments allowed to consume nearly all of monthly wages? The short answer is that the infamous means test isn’t the only factor driving the monthly payment in Chapter 13. The […]
The Biggest Lie About Bankruptcy
The claim that you lose everything in bankruptcy is, flat out, the biggest lie about bankruptcy. Read anything about Chapter 7 and you get, “Your possessions are sold in Chapter 7 bankruptcy.“ It’s a liquidation proceeding and your stuff will be sold to pay creditors, the lie goes on. No wonder people are scared off […]
The Tortoise Is The Mascot Of Retirement Savings
Every campaign needs a logo. Make the logo of your retirement planning a turtle, rampant. Rampant, you say? Turtle? In the Middle Ages, knights put their ID’s on their shields in elaborate heraldry that told bystanders who he was, what his birth order was, and which side of the blanket he was born on. Heraldry featured animals, […]
Who To Pay After Bankruptcy
You’ve filed bankruptcy. Your creditors are stayed. A bankruptcy discharge is ahead. You’re out from under unrelenting pressure to pay creditors. But don’t let your sense of relief keep you from planning: who should you pay after your case is filed? Paying creditors after filing bankruptcy Two legal realities drive who needs to be paid […]
Don’t Tidy Up Before Seeing A Bankruptcy Lawyer
Don’t tidy up your financial affairs before consulting a bankruptcy lawyer to plan for bankruptcy. Your current mess may present opportunities to plan your case for a better outcome. You may waste money or lose bankruptcy options when you make last minute changes to your situation without understanding how that situation plays out in bankruptcy. […]
Does Bankruptcy Bar Retirement Savings?
Ongoing retirement saving by Chapter 13 debtors has been a touchy subject since the means test became a part of the bankruptcy scene. The means test was intended to squeeze every available dollar from consumer debtors. It works by limiting the expenses that can be deducted from income in figuring what a debtor can/must pay […]
7 Essentials For Better Results From Filing Bankruptcy
Plan before filing bankruptcy and you get better, more certain relief. Even if you’re not quite sure that you’re ready to take the bankruptcy plunge, scout the bankruptcy territory. Take some time to learn the rules and explore ways to maximize the relief available in bankruptcy. If you don’t plan ahead and just rush into […]
