Trustee Ann Mostoller challenged one of our client’s entitlement to an exemption of an IRA. The account through Merrill Lynch had a provision allowing margin calls.
The Bankruptcy Judge ruled in favor of the Trustee and the District Court Judge affirmed the Bankruptcy Judge’s decision.
John Newton on behalf of the client elected to appeal the decision to the 6th Circuit Court of Appeals. After briefing the case and arguing the case on Thursday, June 13, 2013 the 6th Circuit Court of Appeals in record time ruled in favor of our client and reversed the bankruptcy court Judge.
The decision in essence preserves bankruptcy debtor’s rights to exempt and keep all their retirement accounts as long as the account has been qualified by the Internal Revenue Service.