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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37971
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I am currently in chp 13 bankruptcy and owe 90,000 and pay

Customer Question

I am currently in chp 13 bankruptcy and owe 90,000 and pay 1900 per month. I would like to get my federal retirement (FERS) out in a lump sum, can I do this? and do you calculate what it is worth today.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.

cfortunato :

Hi JACustomer,

cfortunato :

Is your question whether or not - aside from your Bankruptcy - you are allowed to take your FERS retirement in one lump sum?

cfortunato :

Or are you asking how the Bankruptcy court would deal with these funds if you did take a lump sum?

Customer:

both

Customer:

ok

Expert:  socrateaser replied 4 years ago.
If your FERS was scheduled as an exempt asset for the purposes of your Chapter 13 plan, then your liquidation of those assets remains exempt from the bankruptcy trustee and your creditors, as long as you can trace your funds back to the retirement account.

Hope this helps.

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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37971
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

does this mean that fers will let you take your total retirement in a single payment? Thanks

Expert:  socrateaser replied 4 years ago.
If you are leaving federal service, or you are already retired, I believe you can obtain a lump -sum distribution. See this link.

Hope this helps.

NOTICE: My goal here is to educate the public about the law. Please help me in this effort by clicking Accept (or, click on one of the happy smiley faces/stars/etc., if applicable) for my Answer to your Question. If you have a subscription account, clicking Accept does not create any additional charge. It merely gets me credit for my Answer.

And, if you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Thanks!

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