401K Contributions

[benniebear]

I am filing a Chapter 13 with a 100% repayment plan to my credit card debt. Surrendering the house - in foreclosure.

My attorney prepared a 100% repayment plan to my unsecured debt (no secured debt except the house, which is going).

I contribute 10% to my 401K. If in a 100% plan, do you think the Trustee will object to the amount of my 401K contribution?

Thanks.

Shelly

[HHM]

Amazingly, under the new law, 401K contributions are "allowed" (within reason) under a chapter 13 plan, and since you are in a 100% payback plan, you should not have anything to worry about.

[JasonK94Z]

So is it ok to up the contribution before filing bk? I only contribute 3% right now since money has been so tight.

[lrprn]

So is it ok to up the contribution before filing bk? I only contribute 3% right now since money has been so tight.

This is a good question to ask your lawyer. Our district limits the amount of retirement contributions to a certain % of gross income for each filer, and that % may differ from district to district and trustee to trustee.

401K contributions being ok in Ch 13 bankruptcy is based on case law decisions and judicial opinions. Your lawyer should know what will fly in your district.