Do Voluntary Retirement Contributions Made During a Chapter 13 Constitute Disposable Income?

By Laila Gonzalez, Freire & Gonzalez, P.A. (Miami, FL)

In 2005 Congress amended the Bankruptcy Code, adding 11 U.S.C. § 541(b)(7) regarding the Debtor’s ability to make retirement contributions. While several courts have found that the change to the code allows Debtors to make retirement contributions, other courts disallow post-petition voluntary retirement contributions. A determining factor in the cases decided on the issue is often the amount the Debtor was contributing pre-petition.

There are three lines of cases regarding the Debtor’s ability to contribute to a voluntary retirement plan post-petition . . .

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