• Feel Crushed

    Feel Unattended

    Feel Scattered

    Not sure what to do

    Need Help

    Need Expert Advice

    CALL 1-800-966-8447

  • Bankruptcy Can

    Stop Bill Collectors
    Stop Lawsuits
    Stop Foreclosures
    Stop Bad Credit
    Stop Repossessions
    Stop Tax Garnishment
    Help With Student Loans
    Help With judgment
    Help With Past Taxes
    Help You Rebuild Credit

    CALL 1-800-966-8447

  • You are here because you need to

    File bankruptcy 7
    File bankruptcy 11
    File bankruptcy 13
    Consult what's right for you

    CALL US 1-800-966-8447

 

Your child’s education is important, even when it comes to bankruptcy law.

529 plans are a great way to save for your child’s education.   You can opt for one of two types of a 529 Plan: a prepaid tuition plan or a tax-exempt savings account for a qualified beneficiary.

So what happens when you’ve carefully put together this savings plan for beneficiary's future but then need to file for bankruptcy yourself to remedy your own financial difficulties?  When it comes to bankruptcy, the issue is whether or not the  529 Plan is protected from your creditors.

Is Your 529 Plan Safe?

Under section 541(b) of the Bankruptcy Code, assets in a 529 Plan may or may not be protected from the reach of the court.  The answer depends on when the money was deposited into the account.  Funds in a 529 Plan are excluded from the bankruptcy estate if the money was deposited more than a year before the filing. This protection is limited to $5,000 for funds added to the 529 plan between one to two years before the case is filed.  For funds deposited more than two years before the case is filed, however, there is an unlimited protection.

It Depends On The Beneficiary

In all circumstances, however, the beneficiary of the 529 plan must be your child, step-child, grandchild, or step-grandchild. You can’t get any protection for funds in a plan you’ve set up for yourself or a spouse.  If you’re the beneficiary then the account is considered to be yours for the purposes of filing a bankruptcy case.  The property needs to be exempted another way – if possible – or you’ll be forced to surrender it in a Chapter 7 bankruptcy.

Plan And Protect

Depending on the situation, your 529 Plan may be safe in your case.  If not, there’s always the possibility that a Chapter 13 makes sense. Or perhaps some planning is in order to minimize the loss when you file.  Either way, it’s one more reason for us to sit down and talk before you go off and make the mistake of either filing a case without a lawyer or making a move that may jeopardize your situation.

Get Trusted, Experienced Bankruptcy Counsel Today

Applying decades of experience, Steven Taylor will assess your financial situation and hear you out on your goals. To discuss your immediate concerns and long-term financial challenges, request a free telephone consultation with Steven Taylor today.  He can help you find the best solution and take decisive action to regain your financial foothold.

Steven P. Taylor, P.C. | Indianapolis Chapter 13 Bankruptcy Lawyer

Contact the law firm of Steven P. Taylor, P.C. today at (317) 271-1111 at his Indianapolis office or (765) 868-0807 at his Kokomo office for a consultation about whether you should file for Chapter 13 bankruptcy or Chapter 7 bankruptcy  in Indiana or email us your questions.  

Download Intake Worksheet

Download Budget and Required Document Checklist

Prior to your first meeting with my office, please complete the above downloads. They can provide me with further insight into your financial situation and allow me to determine if Chapter 7 bankruptcy or Chapter 13 bankruptcy is appropriate for you.

 

My practice serves individuals throughout Indiana, including Bartholomew, Boone, Brown, Carroll, Cass, Clinton., Delaware, Grant, Hamilton, Hancock, Hendricks, Howard, Johnson, Madison, Marion , Miami, Monroe, Montgomery, Morgan, Shelby, and Tipton county as well as the municipalities of Columbus,  Lebanon,  Zionsville,  Nashville, Galveston, Frankfort, Muncie, Gas City, Marion, Carmel, Cicero,  Fishers,  Noblesville, Sheridan, Westfield, Fortville, Greenfield, McCordsville, New Palestine, Avon, Brownsburg, Danville, Plainfield, Greensboro,  New Castle, Spiceland , Greentown, Hemlock, Kokomo, Russiaville, Franklin, Greenwood,  Nineveh, Trafalgar, Whiteland, Alexandria, Anderson, Elwood, Beech Grove, Camby, Castleton, Indianapolis, Lawrence, Speedway, Amboy, Bunker Hill, Converse, Miami, Peru, Bloomington, Crawfordsville Martinsville, Mooresville and Paragon.

We are a debt relief agency. OUR DEBT RELIEF LAWYERS help people file for bankruptcy under the united States bankruptcy code. IF YOU NEED DEBT RELIEF, OUR LAWYERS ARE READY TO HELP.


Quick Contact

* indicates required field.
*  
 
   
  
   Security Code
 
Send

If you would like to provide more detailed information about your situation, please click here.


CALL US