MD Chapter 7 Question


G

George

I'm considering filing a chapter 7 in MD. I'm going to consult with an
attorney, but I have a few questions right now that I hope someone
could help me with.

First, my only real asset is approximately $15k-$20k in my IRA. Is
that protected, or would I have to liquidate above my exemption
amount?

Second, all my debts were incurred, and were in default, prior to
getting married almost 2yrs ago. Will this affect my wife's credit?
And will her income and assets be included in my filing?

Thanks in advance!
 
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J

Jack

I'm considering filing a chapter 7 in MD. I'm going to consult with an
attorney, but I have a few questions right now that I hope someone
could help me with.

First, my only real asset is approximately $15k-$20k in my IRA. Is
that protected, or would I have to liquidate above my exemption
amount?

Second, all my debts were incurred, and were in default, prior to
getting married almost 2yrs ago. Will this affect my wife's credit?
And will her income and assets be included in my filing?

Thanks in advance!
I'm not sure about your first question: some retirement accounts are
exempt, but I don't know about IRAs. Brett Weiss is a MD bankruptcy
attorney who frequents this list and can give you a definitive answer
on that.

The second question is one that my wife had with my filing. You can
file individually, and it won't show up on her credit report, as long
as you don't have any joint debts.

The trustees in my area do two things that may or may not apply in MD:
First, they want to know why a married person is filing individually,
and my attorney told me to be honest: that I haven't been married
long, and the debts were incurred prior to the marriage. Second, they
want to see a list of HOUSEHOLD income and expenses, just to make sure
that the non-filing spouse's disposable income couldn't be used to
fund a Ch. 13 plan. Both those things make sense when you consider one
of the trustees' primary jobs is to make sure there are no undeclared
assets or income sources.

Your wife's individual assets don't come into play, but JOINT assets
do. What happens to joint assets depends on a few things, like the
exemptions available to you and standard practice for the local
trustees.
 

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