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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2518
Experience:  Better Business Bur 15yrs bankruptcy experience. Chicago Bar
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I am on SS Disability. I am filing for Chapter 7 Bankruptcy.

Resolved Question:

I am on SS Disability. I am filing for Chapter 7 Bankruptcy. I took a $16,872 distribution from an IRA in 2008. I took a final distribution of $1,682 in January of 2009 & closed the account. I am 50 years old. All penalties were deducted at the time of the withdrawals. I filed tax returns and reported these distributions these distributions to the IRS (as well as paying additional taxes for the early withdrawal of the larger sum for the 2008 tax year).

My question is: Do I have to list these distributions on page 22, box #2, of form B7 (Official Form 7, updated 12/07), "Statement of Financial Affairs" when I file my case? My only other source of income was my SS Disability, and I was told that if I did not to report this it would not effect my case. Is this true?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 4 years ago.
Hi. Yes, you would list the closed IRA on the statement of financial affairs. As long as you spent it down on your monthly living expenses, you will be fine. You have to list all closed accounts. I see no issue with this matter though. Thanks for your question. Good luck.
Customer: replied 4 years ago.
I have already filed & mailed my papers yesterday w/o reporting the distribution. Can I file an amendment to this page of my filing papers?
Expert:  Terry L. replied 4 years ago.
Yes, you should file an amended statement of financial affairs. There is no fee to do so, and it needs to be listed, go ahead. You should wait until there is a case # XXXXX perhaps call the clerk today to get it, and put that on the amended form.Thanks.
Customer: replied 4 years ago.
Thank you very much. I am using a delivery confirmation for my papers, and they were listed as "out for delivery" about 90 minutes ago. I will call them this afternoon for a case number. One final question: Do you know if this would effect my ability to file for Chapter #7?

My total SS disability incomes were $18,552 for 2008 & $19,692 for 2009.
Expert:  Terry L. replied 4 years ago.
No, you just need to list the closed accounts. since your income was so low, as long as you spent the proceeds on living expenses, you'll be fine, no issues. Thanks
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2518
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
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