Q: I am considering bankruptcy and have money in the bank , should I move the money to an IRA account prior to filing ?
I am considering bankruptcy next year and have money in the bank , should I move the money to an IRA account prior to filing ? I did speak with an attorney and was told IRA's are exempt.
A: No, you shouldn't make any moves like this without first consulting a local bankruptcy attorney. Pre-bankruptcy asset planning is tricky and shouldn't be done without a full understanding of the risks. Certain activities including moving money around can be avoided by the trustee and put you in a worse position than had you left it where it was.
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