As Attorney Bunce implied, if the annuity was exempt at the time of the petition, you can probably liquidate part of it during the Chapter 13 case.
The best way to be sure, is to contact the attorney who handled your Chapter 13 and find out the attitude of the Chapter 13 trustee about such matters, and to review your Schedule C for the exemption that should exist.
Of course, if you handled this case on your own, you are probably already in trouble since you are asking this question. In which case, I would urge you to engage a competent Chapter 13 attorney in your area pronto to review your pleadings, fix the errors, and answer this question.
If you need further clarity, please email me at MICHAEL@MIRELAND.US Answers to questions are for general information purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting a competent bankruptcy attorney in your area and providing ALL relevant information.
Ryan C. Wood is Bay Area bankruptcy lawyer and has been practicing exclusively bankruptcy law in California since 2007. Mr. Wood formerly worked for David Burchard, Chapter 13 Trustee for the Santa Rosa and San Francisco Divisions of the United States Bankruptcy Court for the Northern District of California. West Coast Bankruptcy Attorneys has filed hundreds of bankruptcy cases and has an “A” rating by the Better Business Bureau.
Legal Disclaimer: Ryan C. Wood practices law in California only. Any answers to questions re not intended to be legal advice or create an attorney-client relationship. Always consult an attorney in your jurisdiction about your particular circumstances.