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Chapter 13: Borrowing from Pension
Hale:
The latter, 2, is the way to go, but make sure there is a good reason to
have the reduction of income. If it doesn't modify payment to the
general unsecured creditors you're probably fine.
Steven B. Lever
The post was migrated from Yahoo.
I know of the case law that says a retirement loan being paid back in
Chapter 13 isn't a "debt" but a reduction in income. Given this, in a
confirmed Chapter 13, must a debtor 1) seek court permission to borrow from
a exempted pension, or 2) is this merely converting an exempted asset,
causing a reduction in income, necessitating a motion to modify for the
repayment?
Stumped in Santa Clarita,
Hale
I know of the case
law that says a retirement loan being paid back in Chapter 13 isn't a "debt" but
a reduction in income. Given this, in a confirmed Chapter 13, must a debtor 1)
seek court permission to borrow from a exempted pension, or 2) is this merely
converting an exempted asset, causing a reduction in income, necessitating a
motion to modify for the repayment?
Stumped in Santa
Clarita,
Hale
The post was migrated from Yahoo.