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Means Test Questions 7 vs. 13

Posted: Sat May 30, 2009 7:26 pm
by Yahoo Bot

I don't recall whether I ever filed that case, but Hale posted a Ninth
Circuit decision yesterday that makes this analysis simple. 401k loan
repayments are not allowed deductions from the means test. Period.
In re Egebjerg
They are apparently allowed in Chapter 13. So on the same facts, I'd just
file a Chapter 13 and propose a nominal monthly payment for 36 months.
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
Toll Free: 1-866-576-6275
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at

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Means Test Questions 7 vs. 13

Posted: Thu May 28, 2009 3:20 pm
by Yahoo Bot

5/28/09
To: Mark J. Markus
In November 2008 you posted this query. I have a similar situation and wonder if you can share with me the option your client took and the result. Thanks in advance.
Sharon C. Hughes
Hughes & Dunstan, LLP
21650 Oxnard Street, Suite 1960
Woodland Hills, CA 91367
Tel: 818-715-9558 x1001
schug98@aol.com
>
> On those facts, there is no ACP requirement underKagenveama.
>
> This highlights the disparity between above and below-median-income debtor regarding application of 11 U.S.C. 541(b)(7).
>
> I think its better to go with the Chapter 7 and add the retirement under "other expenses" with a reference to 541(b)(7) and let the UST make the argument that the disparity in the forms makes sense.
>
>
> --- On Mon, 11/3/08, Mark JM wrote:
>
> Subject: [cdcbaa] Means Test Questions 7 vs. 13
> To: cdcbaa@yahoogroups.com
> Date: Monday, November 3, 2008, 5:47 PM
>
>
>
>
>
>
>
> Revisiting this issue:
>
> Debtor is not "passing" the means test for a chapter 7 and is showing approximately $300 surplus income on Form 22A. This of course does not include voluntary retirement contributions or 401k loan repayments which together total almost $800 per month.
>
> So when I go to tell my client how much her Chapter 13 plan payment is likely to be, I move to Form 22C and plug in the allowed retirement deductions on line 55 and, lo and behold, Negative Disposable Income! So, under Kagenveama, debtor has a zero monthly payment plan in a Chapter 13.
>
> So my question is, would it be best to file a Chapter 7 and argue as special circumstances the nonsensical result above, or should I file a Chapter 13 with a $25 monthly plan payment for 60 months and argue how debtor is being extremely magnanimous in paying 25 times the required monthly amount?
>
> ************ ********* ****
> Mark J. Markus
> Law Office of Mark J. Markus
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)509-1460 (fax)
> Toll Free: 1-866-576-6275
> web: http://www.bklaw. com/
> This Firm is a Qualified Federal Debt Relief Agency
> _____
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