Whole life insurance premium deductions on 22A or 22C not allowed BUT
Posted: Wed Aug 21, 2013 2:08 pm
I am wondering whether this argument would fly in a Chapter 13. I have a
Chapter 7 that is going to be converted to a Chapter 13 thanks to the UST.
Among other issues, one of their beefs was the taking of whole life
insurance premiums on form 22A when the form clearly says you can only take
this deduction for term life. The debtors are 60+ and this whole life is
kind of like a retirement savings for them since they don't have much
else. Of course I suppose they could have just opened an IRA but they
didn't and they'd like to keep their whole life policies.
I am wondering whether they would be allowed to continue to make these
premiums in a Chapter 13 under the theory that this is essentially their
retirement savings, or if they'll be required to devote those sums to the
plan instead. It's about $600/month. Has anyone run across this?
Also, did I hear a rumor that debtors are no longer allowed to take
deductions on Form 22C for retirement savings (401K/IRA)? If that's true
then I guess my post is moot anyway.
Holly Roark
Certified Bankruptcy Specialist*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**For a quicker response, email me at holly@roarklawoffices.com.
I only use gmail for my listservs, and am likely to miss private emails
directed to my gmail account.**
I am wondering whether this argument would fly in a Chapter 13. I have a Chapter 7 that is going to be converted to a Chapter 13 thanks to the UST. Among other issues, one of their beefs was the taking of whole life insurance premiums on form 22A when the form clearly says you can only take this deduction for term life. The debtors are 60+ and this whole life is kind of like a retirement savings for them since they don't have much else. Of course I suppose they could have just opene
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