Central District Consumer Bankruptcy Attorney's Association

How are 401k loans treated in the Plan? Do 401k loans usually get put into a separate class, or do most of you just have the debtors repay them outside the plan (but include the expense in Schedule "J" for budget purposes)?
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> 401k loan repayments are an acceptable and allowable expense in a
> chapter 13 not in a chapter 7.
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> Of Stephen
> Sent: Thursday, May 06, 2010 9:56 AM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] 401K loan repayment in Ch. 7 Means Test
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> Dear Listmates:
> I have a client who is is just over the means test. I understand that
> 401K loan repayment expenses is questionable in a Ch. 13 repayment plan
> expense, but how about in a Chapter 7 means test to ovecome the
> presumption from arising?
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> Thanks,
>
> Stephen Stern, Esq.
>

The post was migrated from Yahoo.

I do it outside the plan. Otherwise, the Trustee would have to be paid
on that.

The post was migrated from Yahoo.