QUESTION
If I wait until the divorce is final to convert from a 13 to a 7 for both my IRA and debts, how long should I wait and what doI do to prevent IRA loss
Asked on Jun 28th, 2013 on Bankruptcy - Missouri
More details to this question:
Divorce from my cheater husband has been pending for 2 years. We filed joint chapter 13 prior to filing divorce (1 year left of 5 year plan). Divorce court ordered him to pay 13 fees and final hearing is in a few months. I have substantial, increasing attorney fees and other debts assigned thru divorce court and lost my job. I have a pension (acquired before the marriage and exempted in the 13) and because of a buyout it will roll to inherited IRA before the divorce or 13 are completed. I'm about to be homeless. The house is in foreclosure (the stay was lifted when payments weren't made) but divorce court ordered me to place home for auction even though it's upside down and making me pay for the auction. How does it work? I'm 47. It's complex!
4 ANSWERS
Deborah F. Bowinski
You really need to consult with your own separate bankruptcy attorney to determine what your best options will be moving forward.
Answered on Jul 03rd, 2013 at 3:10 AM
Yes, it is complex. Way to complex to answer in this format.
Answered on Jul 02nd, 2013 at 9:00 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It certainly is complicated. You would do very well to find a lawyer skilled in both bankruptcy and divorce: they are not many, but they can be found. You may want to convert your Ch. 13 to a Ch. 7 since you are unemployed. You can separate your case from your estranged husband's with a proper motion.
Answered on Jul 02nd, 2013 at 5:01 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You will have to do what the divorce judge tells you to do. If the house sells, it maybe to a speculator and you could continue to rent out the house. If you don't own the house anymore, you may want to dismiss your chapter 13. You will have to talk to your attorney about that. You could then take money out of the IRA for living expenses.
Answered on Jul 01st, 2013 at 6:07 PM