HOT. The Supreme Court says IRAs are safe from creditors!

[emeraldsky]

High court: IRAs can be shielded from creditors
Bankruptcy protection expanded beyond 401(k)s, pensions
IRAs now join pensions, 401(k)s, Social Security and other benefits tied to age, illness or disability that are afforded protection under bankruptcy law.

link

 

[AnyMal]

good news. Not I am going to file anytime soon. Hopefully never...

 

[Chadder007]

w00t! The Supreme Court finally made a good decision...

 

[Generator]

The tough part is going to be able to sign for bankruptcy

 

[nealh]

seems only fair given the protection companies receive when they file bankruptcy

 

[RideFree]

Memo to self:
1. Apply for about 15 CC offers
2. Max them out with the caxh advance offers
3. Put all the proceeds into IRA
4. Declare bankruptcy so I don't have to repay
5. Whoop it up in Ipanema (where maybe they don't have extradition)!


Bed, Breakfast and Beach $16/day

 

[artist99]

bush must be livid, maybe he'll have a heart attack

 

[superHARD]

Originally posted by: RideFree
Memo to self:
1. Apply for about 15 CC offers
2. Max them out with the caxh advance offers
3. Put all the proceeds into IRA
4. Declare bankruptcy so I don't have to repay
5. Whoop it up in Ipanema (where maybe they don't have extradition)!


Bed, Breakfast and Beach $16/day

So R$42,00 (Forty and two Reals) is about $16?

And why not just just keep the cash and not putting it in a bank account? Or at least not in your name.

 

[AnimEva]

Sorry, they limit the amount you can put into your IRA each year

Originally posted by: superHARD

Originally posted by: RideFree
Memo to self:
1. Apply for about 15 CC offers
2. Max them out with the caxh advance offers
3. Put all the proceeds into IRA
4. Declare bankruptcy so I don't have to repay
5. Whoop it up in Ipanema (where maybe they don't have extradition)!


Bed, Breakfast and Beach $16/day

So R$42,00 (Forty and two Reals) is about $16?

And why not just just keep the cash and not putting it in a bank account? Or at least not in your name.

 

[leigh6]

Will IRA's take Paypal?

 

[M0NEYSH0T]

Originally posted by: nealh
seems only fair given the protection companies receive when they file bankruptcy

x2

 

[TekDemon]

Interesting although pretty impractical since I doubt most of us will care to run from the CC companies

 

[RideFree]

Originally posted by: TekDemon
Interesting although pretty impractical since I doubt most of us will care to run from the CC companies

Why, do they have goons?

 

[RideFree]

So R$42,00 (Forty and two Reals) is about $16?

Actually, $15 and change...maybe a Cerveza? Do they have Corona (one of the world's top three beers IMJO) in Brazil?

 

[RKS]

Originally posted by: Generator
The tough part is going to be able to sign for bankruptcy

exactly.

new bankruptcy laws are going to make it very difficult for the average person to run away from his/her financial mess.

 

[Losty]

Originally posted by: RideFree
Memo to self:
1. Apply for about 15 CC offers
2. Max them out with the caxh advance offers
3. Put all the proceeds into IRA
4. Declare bankruptcy so I don't have to repay
5. Whoop it up in Ipanema (where maybe they don't have extradition)!


Bed, Breakfast and Beach $16/day

eh? did you know your max IRA per year is 3k?
soon to be 4...

 

[ponyo]

Originally posted by: RideFree
Memo to self:
1. Apply for about 15 CC offers
2. Max them out with the caxh advance offers
3. Put all the proceeds into IRA
4. Declare bankruptcy so I don't have to repay
5. Whoop it up in Ipanema (where maybe they don't have extradition)!


Bed, Breakfast and Beach $16/day

Most cards have lower cash advance limit than charge limit. Better method is to use the checks they provide and deposit that into your checking account. Or you can max out your cards by buying popular expensive items and Ebaying them new. Then buy a house in Florida with the proceed and declare bankruptcy. Primary home used to be protected in Florida but I don't know if that's still true. 10 cards at 20k each card = $200,000. You can buy cheap house for that price.

 

[Mallow]

Originally posted by: RideFree
Memo to self:
1. Apply for about 15 CC offers
2. Max them out with the caxh advance offers
3. Put all the proceeds into IRA
4. Declare bankruptcy so I don't have to repay
5. Whoop it up in Ipanema (where maybe they don't have extradition)!


Bed, Breakfast and Beach $16/day

IRA contributions are limited to $3K this year, $4K next year and then up to $5K in 2008 or something like that. No worky.

 

[tcsenter]

Originally posted by: nealh
seems only fair given the protection companies receive when they file bankruptcy

Right, that part where creditors can come in, take everything including the carpet and peel the wallpaper from the walls of defunct companies who owe them money is a really sweet deal. :roll:

This will, of course, disproportionately benefit people who are most likely to have significant assets in retirement accounts which they could use to pay-off the debts they chose to incur - the wealthy (or at least well-to-do).

Poor and working class folks rarely have retirement accounts worth protecting. So the rich can not only shield money in luxurious homes that are substantially protected from bankruptcy in most states, but they get to hide assets in retirement accounts, too.

Score one for the rich - woot! Can't wait until I am able to count myself among them one day. lol!

 

[nomadh]

Finally its safe to loan money again. Now I finally can get rich. We still need to reinstitute debtor prison.

 

[slunk]

Originally posted by: Mallow
IRA contributions are limited to $3K this year, $4K next year and then up to $5K in 2008 or something like that. No worky.

It's actually $4K this year and through 2007 for those 49 and younger.

 

[1EZduzit]

I thought if you went bankrupt you could keep a house/car? Or do like the people who got caught with their hands in the cookie jar during the S&L crisis, put things in your wife's name.

Now if only I could affford a IRA. Of course you can keep your money safe by squirling it away in cash, gold, etc.

Should'nt this be in the P&N forum??

 

[emeraldsky]

Shouldn't this be in a forum where nobody would read it and discuss it?
Or should it be here, where people who don't have an IRA can see a big advantage to getting one?
Or maybe it should be here where people who aren't maxing out their IRA account will see a good reason to do so before they go bankrupt.
So far, over 1000 people have read this thread and only one person suggested it's in the wrong forum...... hmmm

 

[flyingboujanero]

I'm pretty sure you can contribute more than the 3k, or 4k or 5k (soon) that was suggested. I think that is just the amount you can contribute and get a tax benefit for. Otherwise i don't think there is a limit to how much you can put in.

EDIT: nevermind, i researched it more. it is only the 3k, for both regular & Roth, combined. But you CAN have one in your name and one in your spouses name, so 3k each.

 

[slunk]

Once again, unless I am grossly mistaken, it is 2005. You can contribute up to $4,000 (not $3K) or $4,500 if you are 50 or older. Nice research.