Questions right after 341

[bigun]

was wondering if I had been contributing 10 - 20% of your paycheck to my state retirement system, via payroll deduction, and I filed chapter 7, would the trustee consider this amount (currently $575 a month) disposable income

Very likely. I'd suggest you get those bk papers and see exactly what they say.

 

[mymymy]

was wondering if I had been contributing 10 - 20% of your paycheck to my state retirement system, via payroll deduction, and I filed chapter 7, would the trustee consider this amount (currently $575 a month) disposable income

Very likely. I'd suggest you get those bk papers and see exactly what they say.

That is unless you live in a state that fully exempts an Erisa approved 401k or other retirement plan. Here in Florida, when using the states exemptions, you must list your Erisa Plan but are not required to value it.. only to note that it is "not part of the estate."

 

[bigun]

The issue is not if the assets of the 401K are exempt from seizure. They are exwmpt.
The posters problem will be the likelyhood that the trustee will look at those contributions as a source of disposable income.

 

[mymymy]

The issue is not if the assets of the 401K are exempt from seizure. They are exwmpt.
The posters problem will be the likelyhood that the trustee will look at those contributions as a source of disposable income.

Hi Bigun..

Perhaps I'm misunderstanding the concept of the erisa exemption.. will you please explain why this poster or anyone else would be or wouldn't be allowed under the exemption to continue to contribute to it? (Kind of like a poor man's asset shelter, no?)

Are you an attorney? I'd love to read the law on this as, unfortunately, in three weeks we'll be answering the same questions. What about a 401k loan repay that is automatically deducted from a paycheck, pre-tax? Any help would be appreciated.

Thank You.

 

[bigun]

No, I'm not an attorney. Just a layman with an unhealthy interest in the subject!
The fact is, trustees may consider retirement account contributions as disposable income since they are voluntary. Just tons of caselaw.

http://www.michbar.org/opinions/us_appeals/2004/022004/22230.pdf

Be sure and quizz your attorney about how trustees in your district handle the question.

 

[mymymy]

No, I'm not an attorney. Just a layman with an unhealthy interest in the subject!
The fact is, trustees may consider retirement account contributions as disposable income since they are voluntary. Just tons of caselaw.

http://www.michbar.org/opinions/us_appeals/2004/022004/22230.pdf

Be sure and quizz your attorney about how trustees in your district handle the question.

Unfortunately, we are going at it Pro Se. I know, I know. We just have no choice. It's complicated (isn't it always?!) but we just can't swing it. Pro Bonos waiting lists are lengthy right now.. since Bush signed the BK reform and the sheriffs have been knocking on the door. Whew.. what a mess and you can't believe how stupid and ashamed I feel. It's awful.

I haven't worked in 9 months b/c of medical problems but, have been looking for a job. No luck yet. Dear Husband contributes 5% because if he doesn't, they just swallow it up in more FICA and taxes.

I asked a question on another thread about gift money, too. I am so perplexed.. maybe you can help?

How often do trustees actually supeona your checking accounts? And what "red flags" do they look for, any idea?