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Chapter 13: do retirement funds (IRA/401K) lose exempt
It's probably property of the estate but I will assume the next question is
whether it's income that must be paid to creditors? I would say no and
analogize to house cases.
What's the difference between this scenario and the Debtor selling his
exempt house (which has appreciated in value)? In the latter case, he gets
to keep the appreciation + exempt portion and it's not income (see that
Bufford case floating around). There is no discernible difference to me.
Sincerely,
*Michael Avanesian, Esq. *AVANESIAN LAW FIRM
101 N. Brand Blvd., PH 1920
Glendale, California 91203
Tel: 818.276.2477 Fax: 818.208.4550
*Confidentiality**: *This electronic transmission and its contents are
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On Mon, Feb 23, 2015 at 9:09 AM, Holly Roark hollyroark22@gmail.com
[cdcbaa] wrote:
>
>
> Section 1306(a) indicates that the estate includes all property of the
> type included in section 541 that the debtor acquires after the
> commencement of the case and before it is closed, dismissed, or converted.
>
> Property of the estate does not include such retirement funds as set forth
> in 541(b)(7).
>
> However, when such an asset is "cashed out" and becomes simply "cash",
> isn't this just a postpetition asset that comes into the estate under
> section 1306(a)?
>
>
> Holly Roark
> Certified Bankruptcy Specialist*
> *and Sports Lawyer*
> holly@roarklawoffices.com **primary email address**
> www.roarklawoffices.com
> Central District of California - Consumer Bankruptcy Attorney
> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
> T (310) 553-2600; F (310) 553-2601
>
> *By State Bar of California Board of Legal Specialization
>
> **Counsel for Chapter 13 Trustee Kathleen A. McCallister (Idaho) T (208)
> 922-5100
>
>
>
It's probably property of the estate but I will assume the next question is whether it's income that must be paid to creditors? I would say no and analogize to house cases.What's the difference between this scenario and the Debtor selling his exempt house (which has appreciated in value)? In the latter case, he gets to keep the appreciation + exempt portion and it's not income (see that Bufford case floating around). There is no discernible difference to me.Sincerely,Michael Avanesian, Esq.AVANESIAN
LAW FIRM101
N. Brand Blvd., PH 1920Glendale,
California 91203Tel:
818.276.2477 Fax: 818.208.4550Confidentiality:This electronic transmission and its contents are legally privileged and confidential information and intended solely for the use of the addressee. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or other use of this message and its contents is strictly prohibited. If you have received this transmission in error, please reply to us immediately and delete this message from your directory.IRS Circular 230 Disclosure:To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
On Mon, Feb 23, 2015 at 9:09 AM, Holly Roark hollyroark22@gmail.com [cdcbaa] <
Section 1306(a) indicates that the estate includes all property of the type included in section 541 that the debtor acquires after the commencement of the case and before it is closed, dismissed, or converted.Property of the estate does not include such retirement funds as set forth in 541(b)(7). However, when such an asset is "cashed out" and becomes simply "cash", isn't this just a postpetition asset that comes into the estate under section 1306(a)?Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
holly@roarklawoffices.com**primary email address**
www.roarklawoffices.com
Central District of California - Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
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