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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37955
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I am planning on filing Chapter 7 in New York state. I have

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I am planning on filing Chapter 7 in New York state. I have a traditional IRA valued at $92,000. I am attempting to discharge ~$70,000 in unsecured debt. I have no income (unemployed) and will pass the means test.

My attorney told me, in an informal meeting (not having looked closely at my situation) that 401ks are not exempt and that a traditional IRA will only be exempt if I file a exemption request and then I will have to explain why I need to keep this money.

I can not find anywhere on-line that indicates that a classic, tax exempt IRA or ESERA 401k plan is not exempt (up to ~$1,000,000). Can you give me an idea about what aspect of the bankruptcy law he is referring to?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 6 years ago.

IRA and 401(k) are exempt. Period: In Re Dubroff, 119 F.3D 75 (2d Cir. 06/18/1997).

 

Hope this helps.

 

 

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