Potential Ninth Circuit Decision in the Making: Where do Voluntary Contributions to Retirement Fit in Chapter 13 Bankruptcy Plans?

By Ansley Owens, Contributing Writer and Intern for The Academy (Nashville, TN)

Trustees and debtors should keep an eye on the Ninth Circuit and the nine states it covers regarding the treatment of voluntary contributions to retirement plans.

A recent decision in the Western District of Washington held contributions to an employee retirement plan should be excluded from the computation of current monthly income and, therefore, not deducted from disposable income in the Means Test. In re Vu, No. 15-41405 (Bankr. W.D. June 16, 2015).

Anh-Thu Thi Vu was an above-median debtor . . .

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