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 socrateaser Your Own Question
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38879
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

We lost our restaurant business in California (abandoned) on

Resolved Question:

We lost our restaurant business in California (abandoned) on 3/1/09. We owed about 8,000 to State Board of Equal. and other debts totalling about 80,000. We tried to get an attorney in California right away to file bankruptcy, but did not have enough money. In meantime, we relocated to Sparks, Nevada with money from friends and family. We asked and received a payout from my husband's 401K for approx 11,000 so that we could get an attorney immediately and for living expenses. Our bank, wells fargo, put a hold on the money, and we were only allowed to withdraw 4,000. The money was supposed to be available on Monday. However, we logged onto our account to find the money was seized leaving us with a negative balance. We can't tell who took it, but assume it was California State Board of Equalization. We have other funds that we could get such as my husband's pension, but we're afraid the same thing will happen. We are both in our sixties. We don't know what to do. Help!
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 8 years ago.

The state cannot seize pension funds that are controlled by a plan administrator. It can only reach the funds as they are withdrawn. If you have already rolled this money over into a private account, then it can be reached by the BOE. If you have any other money that you can transfer to a Nevada bank that has no California branches, then the BOE could not reach that money directly. It would have to get a judgment against you and register that judgment in Nevada in order to try to collect.


Concerning your other, non-government related debts, filing bankruptcy may wipe all of them out. Your husband's pension is exempt from your creditors in bankruptcy, so you won't have to worry about that.


For a bankruptcy lawyer referral, see:


Note: you will have to file in California, if you moved within 180 days of filing.


Hope this helps.


Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.

socrateaser and other Bankruptcy Law Specialists are ready to help you