Legal Question in Bankruptcy in New York

Chapter 7 and 401K

We recently closed my husband's 401K to pay of credit card debts.We paid off two credit cards and now we are considering filing Chapter 7. We would like to know if we open an IRA with the $20,000 that is left, would we run into trouble with the amount being used as income?


Asked on 6/09/08, 1:24 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Chapter 7 and 401K

You need to actually sit down and talk with an attorney who handles bankruptcy for an answer to this; there are some things you said here that raise red flags for me and I would need to find out more before providing any insight.

You can find an attorney through your county's bar association or through the NYS Bar Association (www.nysba.org) if you need a referral. I won't do: you need someone who is geographically local to you.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 6/09/08, 3:27 pm


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