Tag: IRA

Law Review: Twomey, Tara & Maynes, Todd- Protecting Nest Eggs and Other Retirement Benefits in Bankruptcy

Abstract:
For debtors facing financial distress in the twilight of their working years or beyond, bankruptcy’s promised fresh start may depend more on preserving retirement assets and benefits than returning to economic productivity. Even for those in the prime of their working years, losing retirement assets can represent a major lifelong setback. As a result, the question of whether consumer debtors can keep all or part of their retirement assets and benefits is a critical consideration. This paper surveys the intersection between the Bankruptcy Code and the preservation of retirement assets and benefits before and after the 2005 amendments to the Code.… Read More

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Bankr. W.D.N.C.: In re Waterson- Exemption of IRA Funds Following Equitable Distribution

Summary:

The Debtor sought approval of the settlement of an Equitable Distribution, conducted in Maine, that would have allowed her to transfer funds into exempt IRAs, arguing that an Equitable Distribution  rights are not property rights and therefore not an asset of the bankruptcy estate.  The Trustee objected.

As a result of  a recent amendment to the Maine Revised  Statutes, the bankruptcy court found that the debtor had an inchoate equitable ownership interest in the individual retirement accounts of her estranged husband and that  this inchoate equitable interest in the retirement accounts is property of the debtor’s estate pursuant to § 541(a)(1).… Read More

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