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Will be filling Chapter7. Took out money from my IRA. To pay child support. Would the money be consider income?
13 ANSWERS
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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Yes.
Answered on May 30th, 2013 at 12:44 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Consult with an accountant to determine your income tax liability.
Answered on May 16th, 2012 at 10:54 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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For bankruptcy purposes, it is not usually considered income. For tax purposes, it is.
Answered on May 16th, 2012 at 10:44 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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Yes. Money you withdraw from your IRA is considered income.
Answered on May 15th, 2012 at 4:36 PM
Burton J. Green
No. That is your money and is not treated as additional income for bankruptcy purposes.
Answered on May 15th, 2012 at 4:30 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Well, yes money taken out from an IRA early is considered income. Otherwise it is exempt from the claims of creditors. It is not, however, money from employment. So, if your question is whether it is to be considered income on Schedule I, my response is no.
Answered on May 15th, 2012 at 4:30 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Usually income received one time, with the exception of tax refunds, is not considered income for the mean's test. You will need to show it on the statement of affairs, unless it is a loan.
Answered on May 15th, 2012 at 4:28 PM
You will need to consult with your bankruptcy attorney to answer this question. Income is reported two different places in a bankruptcy petition. One place (Schedule I) is forward looking. The other place (Needs Test) incorporates past events. So, there are actually two places where you may need to record IRA withdrawals as income. Consult with your attorney.
Answered on May 15th, 2012 at 4:27 PM
If you took a loan against your 401(k) it is likely not considered "income." Hire an attorney to represent you in your bankruptcy case.
Answered on May 15th, 2012 at 4:27 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Generally not. There is no unanimity on this point. It may depend on the frequency of withdrawals. It is, after all, income for tax purposes but in reality it is a withdrawal from a tax free bank account from income that was earned in the past.
Answered on May 15th, 2012 at 4:26 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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Different judges have different opinions on the answer to this question. You need to speak with an experienced practitioner in your area.
Answered on May 15th, 2012 at 4:24 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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There are differing opinions as to whether that withdrawal would be considered income for calculation for the means test. This issue can probably be dealt with by your attorney.
Answered on May 15th, 2012 at 4:23 PM
In the Western District of Michigan, income withdrawn from IRAs in the 6 months prior to filing bankruptcy must be reported on the "CMI" test.
Answered on May 15th, 2012 at 4:22 PM