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 Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

I have a bankruptcy question

This answer was rated:

I have a bankruptcy question
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*


Thank you for your question. I am a New York licensed attorney. My name is XXXXX XXXXX I will do whatever I can to answer your questions!

Please post your question
Customer: replied 3 years ago.

I am currently in Chapter 13 in NYS. I am having no problems with my file. My question is-My ESOP has been partially rolled over to an IRA retirement act. There is a real family emergency and I need to take a sum of money out of my account to help my son. Besides the tax implications (I am currently 61 years old) which I will pay when my taxes are due, will taking this money out of my IRA jepordize my Chapter 13 status which I do not want to do. The balance of my ESOP should be rolled over into my IRA this year. Am I ok to take my money out of my IRA and give to my son?

Typically you should obtain bankruptcy court approval to withdraw the funds and gift those funds to your son. Here is why – when you withdraw the funds they lose their exempt status. Once the funds lose their exempt status the trustee can claim the funds for the benefit of creditors in addition to the payments under the plan. In an emergency situation – while the funds are still exempt – the court may approve the transfer

I would be glad to respond to any follow-up questions that you may have.
Ellen and 2 other Bankruptcy Law Specialists are ready to help you

Thank you very much for the "excellent service" rating and the bonus!

If I can be of assistance in the future, begin your question with: "For FiveStarLaw"
Customer: replied 3 years ago.

I appreciate your fast response, however your answer has prompted a 2nd part to my question. In January of this year I took $3000 out of my IRA for a quick loan because my brother had just passed away. I repayed the money within the 60 day window. Am I ok with this or is the $3000 now going to be taken by the court.


Thank you for your help with this matter.

It will depend upon how strictly the judge interprets the rules. Once the money was withdrawn, it typically would have lost its exempt status. However since you immediately replaced the funds, you can argue - if it comes up- that the money did not lose its exempt status
Customer: replied 3 years ago.

Thank you again for your answer. Do you think, in your opinion, that my chances are good that there may be no action by the court because I did replace the funds, and if the court did want the funds would it just want the $3000 that I withdrew and then replaced?


This will be my last question, I am sorry I have had extended questions.



Only the $3000 would be claimed by the court – However I do not know what the chances are that the $3000 would be claimed since I am not familiar with your Judge or Trustee.
Customer: replied 3 years ago.

Many thanks for all your help. I will not take any more money for any circumstance without 1st discussing this with my attorney---who is on a much needed vacation at this time.


Many thanks again,


You are welcome Sam. I wish you the best of luck