Regarding the CH13 means test, can we enter my wife's mandatory pension plan payroll deduction in the expenses? Also, my 401k contributions are matching. Will I be forced to stop contributing??
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Your wife's mandatory pension plan deduction is an allowable expense. 401k contributions are usually allowable expenses, but can raise objections by the trustee. If the trustee objects, it will be a matter of negotiation. If you don't reach agreement with the trustee, the judge will make the decision. It helps if it's the same contribution you've been making for a while. Your attorney should have a good idea of how your trustee reacts to 401k contributions.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
I am in Western PA and I wasn't permitted to continue contributing to my 401K plan.Filed Chapter 13: 8/2006, Confirmed: 10/2006
Total # of payments: 60 / ZERO REMAINING!!
Case CLOSED: 01/27/2012Comment
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Based on the fact that your attorney told you to stop payments on your 401K loan, even though the loan payments are clearly allowed by the BK Code as a deduction in calculating DMI, I don't have much confidence that your attorney did the best job for you. Either that, or you needed to free up income to come up with a feasible plan. It may not be that the 401k contribution is not allowed, but that it wasn't possible for you to continue your contributions and make all of the secured and priority debt payments you had to pay and/or pay for non exempt assets.Originally posted by shellbell View Post
ETA, shellbell, I just read through some of your posts. I'm guessing your plan payment had to cover your IRS debt, car loan and monthly mortgage payments. You probably couldn't afford to do that and make 401k contributions or loan payments. After looking at Foofy610's posts, I don't think he has the same problem because his attorney recommended buying a car in order to decrease his DMI.Last edited by LadyInTheRed; 08-21-2011, 12:51 PM.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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LadyInTheRed. You are correct. My plan payment pretty much took my entire paycheck. @$2107/mth leaving me with a whopping $40 for a paycheck. We've been living off my husband's income. I have paid IRS, Car debt, Electric bill, mortgage payment, motorcycle debt, sewage lien. Two more payments and I am finished! woohoo!!Filed Chapter 13: 8/2006, Confirmed: 10/2006
Total # of payments: 60 / ZERO REMAINING!!
Case CLOSED: 01/27/2012Comment
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