Expert: Terry Leeders - 7/20/2009

Question
I earned $0 income in 2008 cashed out 401K to live off, didn't qualify for unemployment.  Is there a look back period in CA to verify how my 401K disbursement was used?  How far back on any assets we sold to do we have to show? Lastly what is the median income for a family of 4 to quaify for BK-7 in CA?  Thanks

Answer
you have to disclose closed accounts for 12months on your statement of financial affairs.  The trustee will normally ask you what happened to the funds, so be prepared with a list of who received the funds or where spent.  Median income varies by state, so check with the US trustee website at the department of justice.