How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WALLSTREETESQ Your Own Question
WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
16356563
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

a family member is underwater with his property in riverside county,calif and is planning

Resolved Question:

a family member is underwater with his property in riverside county,calif and is planning to file for chpter 7 bankruptcy soon..if he puts some of his savings in a 529 college plan for his kids education can these funds be touched by any collectors when he files chapter 7 or is this money save and can he after the bankruptcy filing withdraw this money when needed or change the 529 plan..fyi he has a 1st and 2nd on his underwater property..thank you
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 6 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

How much money would go into the accounts, also how long will they wait to file?

WALLSTREETESQ :

Under the bankruptcy code a debtor can put non exempt assets into exempt assets and not have to turn the assets over to a trustee.

WALLSTREETESQ :

As long as it is not a fruadulant transfer or a gift, the transfer to the 529 plan if it is exempt under your State laws, would be protected.

WALLSTREETESQ :

According to Bankruptcy Court interpretation on what is a fruadulant transfer the Court stated the trustee much establish each of the following elements:

1) that an interest of the debtor in property was transferred;
2) that the transfer of that interest occurred within one year before the date of filing of the bankruptcy petition;
3) that the debtor received less than "reasonably equivalent value" in exchange for the transfer at issue;
4) that the debtor was insolvent on the date of the transfer or became insolvent because of the transfer.

WALLSTREETESQ :

In this case I do not see an issue

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask








If satisfied please press the accept button so we can receive credit.



WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions