Where to place 401-k loan payments in Form 22A
Posted: Fri Feb 08, 2008 8:38 pm
Where is the appropriate place to insert monthly 401-k loan payments in
the chapter 7 means test (Form 22A)? 401-k loan payments are
involuntary if the debtor is still with the same employer, so my
inclination has always been to list them on line 26 as an involuntary
payroll deduction. However, comparing the Chapter 7 means test to Form
22C Chapter 13 Statement of Current monthly income, 401-k loans go on
line 55 and are not included on the equivalent line 31 for involuntary
payroll deductions.
The only other alternative place to list them is as 1/60th future
payment on a secured claim (at a lower amount since 401-k loans are for
a maximum of 5 years). This does not seem to make sense either because
it would not be listed that way on Form 22C in a Chapter 13. Of
course it is probably an effort in futilty to find logic in BAPCPA, but
I have had two Chapter 7 trustee's question me on this in the past
week.
How are others listing 401-k loan payments on the means test?
Mark Jessee
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