• Home
  • Bankruptcy in Brief
  • ABC’s of Bankruptcy
  • Considering Bankruptcy
  • True Stories
  • Chapter 13
  • Blog
  • About
  • TOC

Northern California Bankruptcy Lawyer

On The Bankruptcy Soapbox

The Soap Box
  • How bankruptcy works
  • Mortgage Matters
  • Consumer Rights
  • Newsworthy
  • You & Your Lawyer
  • Small Business
  • Family Law

Retirement contributions in Chapter 7

By Cathy Moran

As befits a Moran, I got my Irish up at a 341 meeting when the UST’s representative announced that “we don’t allow retirement deductions on Schedule I”.  Huh?  Did she intend to utter fighting words?

First point, as far as I could see, she wasn’t wearing a black robe, so the issue of “allowance” was neither hers nor the UST’s.  Judges decide disputed questions and the UST is no more than a party in interest in a bankruptcy proceeding.

Second point, I’ve always thought that the schedules should reflect the facts.  My client has contributions to her 403(b) retirement plan deducted from her paycheck.  I duly show that on Schedule I, so that as far as possible, Schedule I reflects the current income and deduction situation.  Where does this person come from when she says we don’t “allow” scheduling of deductions?

Third point, if you want to argue that for purposes of the 707(b) analysis, retirement savings may not be an allowable deduction, make that argument, preferably not at the 341 meeting.  Think and speak precisely.

Then, there is the point that, in this case, the Income less Expenses calculation is $3400 underwater.  Is this exercise on the UST’s part a good use of scarce government resources?  Do they think there are $3400 worth of mistakes all of which cut in their favor?  Or is this just a matter of doing something so we justify our budget?  [Personally, I’m waiting to see the UST’s professed interest in creditor abuse manifest itself.]

My suspicion is that the attitude of the UST’s office as being almighty slipped into this unfortunate’s choice of words.

More from the Soapbox

  • Glimmer of Hope For Change In Student Loan DischargeabilityGlimmer of Hope For Change In Student Loan Dischargeability
  • What Asset of Failed Business Is Most Valuable?What Asset of Failed Business Is Most Valuable?
  • Bankruptcy Drives Credit Score SurpriseBankruptcy Drives Credit Score Surprise
  • What’s To Fear About BankruptcyWhat’s To Fear About Bankruptcy
  • Protecting Your Co signor When You Can’t PayProtecting Your Co signor When You Can’t Pay

Filed Under: Uncategorized

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Coronavirus & Your Finances

About The Soapbox

You've arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said "try").

Here, I allow myself to tell stories and express strong opinions on how I think law should work for the consumer and small businesses when it comes to debt.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

How Bankruptcy Works

Speak Fluent Bankruptcy: Guide To Essential Bankruptcy Terms

Bankruptcy has its own language.  If you are considering filing bankruptcy, it helps to know the language spoken there. Master just a couple of words and phrases, and input from a bankruptcy lawyer starts to make sense. So, in our continuing campaign for better understanding of bankruptcy, here's a dozen … Read more

More Posts from this Category

643 Bair Island Road
Suite 403
Redwood City, CA 94063
Phone: (650) 694-4700
Phone: (650) 368-4700

Categories

All content copyright © Moran Law Group. All rights reserved.