Critical Case Comment

By Henry E. Hildebrand, III

Parks v. Drummond (In re Parks), 2012 WL 3193342 (9th Circuit BAP, August 6, 2012) (Jury)

Section 541(b)(7)(A) does not authorize Chapter 13 debtors to exclude voluntary post-petition retirement contributions in any amount for purposes of calculating their disposable income.

Case Summary

The Parks filed a Chapter 13 petition in January 2011. They were employed, had income above the applicable median income for their state, and had been contributing approximately $318 a month to their respective 401(k) retirement plans. In calculating their disposable income on Form 22C, the . . .

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