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From the Editor – Chapter 13 Issues
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By The Honorable William Houston Brown (Retired)
Disposable Income: Step up payments required after completion of 401(k) loan. Sustaining the trustee’s objection to confirmation and citing the majority position, when the debtors would complete repayment of a 401(k) plan loan within twenty-four months, they were required to increase plan payments, since the funds previously used to repay the loan would become disposable income. Repayment of the loan is a known or virtually certain change in financial circumstances under Hamilton v. Lanning. The debtors’ argument that they needed the extra funds . . .
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