Central District Consumer Bankruptcy Attorney's Association

I remember seeing a line of cases wherein a lower court did not think that the
IRA distributions had to be listed on the Means Test. Does anyone else recall
that?
Kenneth Jay Schwartz, Esq.
LAW OFFICE OF KENNETH JAY SCHWARTZ
21031 Ventura Boulevard, Suite 640
Woodland Hills, California 91364-2226
Telephone: (818) 226-1205
Facsimile : (818) 226-1213
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________________________________
To: cdcbaa@yahoogroups.com
Sent: Tue, April 5, 2011 4:12:00 PM
Subject: RE: [cdcbaa] RE: Income from IRAs in 6 months prior to filing a Chapter
13
Please remember that it is not an income test, it is a gross receipts test. I
keep going back to what the USTE's office told cdcbaa members years ago: EVERYTHING gets included unless it is loan proceeds or Social Security
receipts.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale , CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal Specialization.
tion
Nicholas Gebelt
Sent: Tuesday, April 05, 2011 4:08 PM
To: cdcbaa@yahoogroups.com
Cc: Nicholas Gebelt
Subject: [cdcbaa] RE: Income from IRAs in 6 months prior to filing a Chapter
13
Dear Steve,
Leaving aside the rhetorical and political fraud at the core of social
security, there is a clear parallel: During the days of employment the Debtor
contributed to social security and to his IRA. Both eventually pay out
retirement distributions based on the amount that was contributed during the
days of employment. However, 11 U.S.C. 101(10A)(B) does not exclude IRA
distributions from current monthly income, but it does exclude social
security. If Congress knows what it is doing when drafting statutory language
t IRA distributions
out of the 101(10A)(B) exclusions from income. Therefore, I donyou are going to exclude the IRA distribution income from either Form 22C or
from plan payments.
You could, of course, use 101(10A)(B) to exclude the social security income
from inclusion in plan payments. During an informal chat, Judge Jury told me
that she felt this was a sound argument. When I told this to Rod Danielson,
accepted it as legitimate in one of my Riverside Chapter 13s, so the Debtors did
not have to devote any of their social security income to plan payments.
I hope this helps.
Nick
Nicholas Gebelt, Ph.D., J.D.
Law Offices of Nicholas Gebelt
15150 Hornell Street
Whittier, CA 90604
Phone: 562.777.9159
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Email: ngebelt@goodbye2debt.com
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From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Steven
B. Lever
Sent: Tuesday, April 05, 2011 1:25 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Income from IRAs in 6 months prior to filing a Chapter 13
I have a semi-retired 70 year old Chapter 13 Debtor who has multiple sources of
income: pension, SSI, part-time work and IRA distributions.
It seems to me that how much of ones IRA funds, (as exempt assets) are
contributed to the plan is a question of discretion with the Debtor. However,
if we need to contribute all income measured by income received in the 6 months
preceding the month that the case was filed, then these distributions areincome, at least for tax purposes. Or was it income when he earned it years
ago and saved it for retirement?
Anyway, the call of the question is Do I need to count this Debtors IRA
distributions from the last 6 months as his income, and if so, does the Debtor
need to continue to contribute that income throughout the term of his plan?
Law Offices of Steven B. Lever
>
> Steven B. Lever
I remember seeing a line of cases wherein a lower court did not think that the IRA distributions had to be listed on the Means Test. Does anyone else recall that? Kenneth Jay Schwartz, Esq.LAW OFFICE OF KENNETH JAY SCHWARTZ21031 Ventura Boulevard, Suite 640Woodland Hills, California 91364-2226Telephone: (818) 226-1205Facsimile : (818) 226-1213THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY
NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY. THANK YOU.From: David A. Tilem <DavidTilem@TilemLaw.com>To: cdcbaa@yahoogroups.comSent: Tue, April 5, 2011 4:12:00 PM
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