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I am in a chapter 11 bankruptcy, can I open up an ira account?

Las Vegas, NV |
Filed under: Chapter 11 bankruptcy

filed two years ago to stop a foreclosure and negotiate a modification on our home. Did not file for credit card debt. The note had been sold several times and also again during the bankruptcy.

Attorney Answers 4

  1. Typically not, but speak with your bankruptcy counsel about this. Paying yourself via IRA before paying your creditors can spell disaster for the success of your case potentially.

    The concept of 'not included' is a misnomer for any kind of debt in bankruptcy: if it is a personal case (which it sounds as though it is ) it IS included and you must address it.

    As says before, talk to your lawyer right away as is seems there are major issues facing you as well as a misunderstanding about the process in general.

    Good luck!

  2. Are you sure you are in a Chapter 11 and not a Chapter 13? I can't imagine why you would be here talking with us if you worked closely with your counsel and it was able to confirm a Chapter 11 Plan of reorganization.

    Usually, the Plan governs everything. If there was no "(a)(15)" objection, you can do whatever you want with excess disposable income, including paying into an IRA. Even if your lawyer is $600 per hour, spend $600 bucks for an hour of their time so you don't do anything that interferes with your Chapter 11.

    If you don't trust your attorney (which you shouldn't) then I recommend you get a new one to take a look.

    The reason I wouldn't trust your attorney is what is all this garbage about not including credit card debt? there is no such thing as that. You MUST include all debt!!

    Be sure to designate "best answer." If you live in S. California, you may call my firm for a consultation 818-507-6000. The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: for more information about my services.

  3. I doubt you are actually in Chapter 11. It's much, much more likely you are in a chapter 13, unless possibly your attorney filed an 11 for you because your debt level was too high? It's possible, but rare.

    Assuming you do have a plan payment you are making to a confirmed Chapter 13 plan, yes, you could open an IRA. Your lawyer should be directing you, however, especially if you now have the ability to contribute to an IRA if your income has increased.

    This is AVVO, a place for users to obtain general legal information to general legal questions. I am glad to help you in any way I can, within those limits. I wish to make clear I am only communicating with you for the sole purpose of exchanging such general information, and nothing more. It is not legal advice, which I can not provide because among other reasons I know few of the necessary details of your situation. I do not purport to represent you in any way, shape or form. Of course, if you would like to seek out my services, and if you are a NY resident, I will probably not put up very much resistance but representation would still necessitate a signed retainer agreement between yourself and I. Thank you.

  4. There are multiple things wrong with what you wrote here.

    You need to talk to you bankruptcy attorney. If you are trying to do an 11 without one, no sane qualified attorney is going to advise you on this over the internet, any more than you could get advise on your own brain surgery.

    On top of that, you don't "not file for credit card debt." *YOU* file, and you are obligated to disclose everything.

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