Archive for the ‘trusts’ Category

If I File for Bankruptcy, Will It Impact My IRA account, My Spouse’s IRA Cash Value Life Insurance Accounts, or Jointly-Owned Land?

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In general, filing for bankruptcy will not affect your spouse’s property. In a Chapter 7 bankruptcy, the Trustee will be able to take your owned property if it is not exempt. The Trustee can’t take your spouse’s property.

The answer is a little more complicated when jointly-owned property comes into play. The Trustee can take only your portion of the property or all of it depending on the nature of your ownership. Selling the jointly-owned property may be required to divide it between the joint owner and the Trustee.

You should be able to keep your SEP, IRA and 401(k) plans. In many states, IRAs are exempt, save for deposits made within six months before filing. EISA plans are also protected if their documentation contains spendthrift protection.

In California, a life insurance’s cash value exemption is capped at a certain amount, provided you meet the property beneficiaries and meet other requirements. Call the professionals at (209) 214-6600 to help you in your time of need.