In Texas, in a Chapter 7
Bankruptcy proceeding, what kind of documentation does the trustee
ask the debtor for, regarding IRA exempted assets? For instance, an IRA annuity. Will they require a yearly statement from the insurance company showing that it is an IRA, and that's it, or what? I had my IRA with a securities house, invested in mutual funds. I had many medical bills due to a long and costly fight with cancer. In October of 2008, I closed the account and asked for the proceeds in check form. In about 70 days, I decided on the new company to place the funds in. The bank made it an IRA, while noticing that I had gone over the rollover requirement of 60 days. I did a direct transfer to an IRA annuity in March, 2009, to make more interest, and pay myself commission, because I needed it to live on. I am still without a job, (no income),and have spoken to several attorneys.
Some say not to file, since the trustee could find out that it was non-exempt for 10 days, thus it would be a seizable asset. Others say that because it's so small now, (went from 47,000 to about 32,000), that trustee will not dig any deeper. I want to file, so I can restart my credit clock. Cancer, divorce, and joblessness have completely depleted me, and I owe about 90,000. I stopped paying creditors in Nov. Most accounts have been purchased by creditors. What is your opinion? I know there are no guarantees, I just wonder what chance I have to keep my IRA.