Posted on: 05th Jul, 2010 04:50 pm
I am in a chapter & and the trustee proposes to the court to allow 5k of my IRA exempt and the balance turned over to him and them says I may pay the excess value in monthly payments.....what is excess value mean??????
Hi glynngal,
As far as I know, the amount that you have in your IRA account is exempt and the trustee cannot use it to pay off your creditors. However, you can contribute a particular amount towards your IRS every year. If you make an excess payment towards your IRA, then it is not exempt when you file bankruptcy. The trustee can take that excess amount in order to pay off your creditors.
Thanks
As far as I know, the amount that you have in your IRA account is exempt and the trustee cannot use it to pay off your creditors. However, you can contribute a particular amount towards your IRS every year. If you make an excess payment towards your IRA, then it is not exempt when you file bankruptcy. The trustee can take that excess amount in order to pay off your creditors.
Thanks