From the Editor’s Desk – Disposable Income

By The Honorable William Houston Brown (Retired)

Disposable Income

Retirement plan contributions at filing are not included in projected disposable income. One above-median income debtor deducted on Form 22C $541.67 monthly voluntary contribution to an employer-sponsored retirement plan under IRC § 457, and the initial contribution began three months before filing Chapter 13. Discussing the three views of § 541(b)(7), the court adopted the view that “if debtors are making voluntary retirement contributions on the date of the petition, they are permitted to continue them during the life of the plan . . .

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By James J. Robinson, Chief United States Bankruptcy Judge, Northern District of Alabama Under what circumstances should the trustee object to claims (assuming a purpose would be served under § 707(a)(5))? Midland Funding, LLC v. Johnson, 137 S. Ct. 1407 (2017). This case centered around the debtor’s argument that a creditor violated the Fair Debt Collection Practices Act when it...

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Henry E. Hildebrand, III

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An over-median Chapter 13 debtor, in calculating projected disposable income, may deduct the higher of the projected plan payment for secured debts or the IRS allowance, but the debtor may not deduct the higher payment under the original contract.

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From the Editor’s Desk – Disposable Income

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Related Articles

Gotta Watch Those Pro Se Debtors Especially the Ones Called “Trusts”

Furry Blurry Expenses: Pets And Bankruptcy

“Student Loan Bankruptcy Improvement Act of 2025”

Fourth Circuit Overrules Own Precedent, Holds Certain Primary Residence Claims Can be Crammed Down in Chapter 13 Bankruptcies

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