retirement

[frustrated51]

We are filing 13 ASAP. Our atty says our payment will be in the $900 range, but if we increase what we put in retirement we can lower that to $600+. Is it a dollar for dollar exchange? I am trying to figure out how much to raise the retirement.

Thanks,

[lrprn]

We are filing 13 ASAP. Our atty says our payment will be in the $900 range, but if we increase what we put in retirement we can lower that to $600+. Is it a dollar for dollar exchange? I am trying to figure out how much to raise the retirement.

In Ch 13 how much is allowed to be contributed to retirement varies widely between local courts and trustees. Your lawyer is your best source of reliable information about what is allowed in your local bk court.

Also you may want to ask if starting up retirement benefits now right before filing that you haven't been doing up to now could cause your trustee to challenge the expense. Some lawyers will recommend at least a few months of contributions first to create a track record before filing and reduce the chances of an objection. However, again, your own lawyer is the best judge of what will be ok to do in your local court.

[Flamingo]

We are filing 13 ASAP. Our atty says our payment will be in the $900 range, but if we increase what we put in retirement we can lower that to $600+. Is it a dollar for dollar exchange? I am trying to figure out how much to raise the retirement.

Thanks,

It is hard to determine from your second sentence whether or not your attorney said that or if you yourself are asking the question. I am assuming due to that you state you are filing ASAP that YOU are asking the question since, in all likelihood, increasing payments to a retirement fund just before filing will definately be questioned by the trustee. Lrprn gave you good advice - it all depends on your district. Some people will find out they cannot contribute at all and most will be able to keep contributing at the same amount they were doing so in the several months prior to filing. It appears to be district related. Retirement contributions are voluntary and can be viewed as funds that are available to creditors.