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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We are filing a chapter 7, but would like to keep certain sentimental

Resolved Question:

We are filing a chapter 7, but would like to keep certain sentimental collectibles. Can we take money out of our employee based annuity, pay the penalties in taxes and use this money to buy back our items. My husband has been out of work since April & is allowed to take up to 1/2 of his annuity out. The amount is not enough to pay off creditors, but would allow us to keep these items. If we deposit this check in our bank account, will the trustee consider it income & make us use it for creditors?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

Thank you for your question.

You will not want to take this action prior to filing a bankruptcy. The trustee would able to attach the money that you transfer into your bank account. if the items have no monetary value but only sentimental value you will not need to purchase them from the trustee. If the items also have a monetary value, you can negotiate the purchase of them from the trustee after filing
Customer: replied 7 years ago.
The only way that we can afford to buy & keep the items is with the annuity money - our income dropped from 120000 a year to 40000 - there is no way to borrow the amount from anyone - if we do this at the point of bancruptcy when they ask for payment, will they allow us to take it out of our annuity.
Expert:  Ellen replied 7 years ago.
after you file the bankruptcy and negotiate a payment with the trustee, you can make the withdrawal. If you withdraw prior to that time, you will likely lose the money you have withdrawn
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