After 15 months....CONFIRMED!!!

[lrprn]

It's a red letter day in our Ch 13 - as of yesterday at 9:30 am, our case is officially confirmed!

Here's how our two trustee objections played out:

- Objection about paying back hubby's six retirement 'loans' while still contributing to both our retirements = trustee decided to let this go. No judicial opinion required.

- Objection about difference between what the Means Test vs. Schedule I&J showed as our disposable income = we compromised and will pay $150 more/month starting next month through the end of our 57 month plan (trustee was asking for $300 more/month). Again no judicial opinion required.

So after all this, no official case law regarding these two issues will be entered into the bk system....still, we're happy, happy, happy!

Now it's just stay under our trustee's radar and pray no financial disasters strike in the next three and a half years. Keep sending your positive thoughts our way, please!

[wayne-o]

congratulations on finally getting confirmed.. I know its been a long wait for you.

[arkienurse]

I know how relieved you feel right now. Here is to an uneventful chapter 13 plan.

[Misha707]

Congratulations!!! Sorry it got all dragged out for you, but it's probably all the sweeter for you now!!!

[SinkingFast]

CONGRATS!!!

Finally, the relief you've been so patiently waiting for.

Here's to an uneventful remaining time in your BK Plan!!!

[CindyLou]

wooooooooooooooooooooooooowwwwwwwwwwwwwwwwwwwwwwww !!!!!!!!!!!!!!!!!!!!

[uofaguy]

Congratulations LPRN! Must be a great feeling to be confirmed and to begin moving on with life!

I have met with 5 different BK attorneys & have received conflicting advice. At this point, I'm not sure what to do! A question for you, if you don't mind . . .

You mentioned that you are able to repay your retirement loans as well as continue to contribute to both your retirements. We are in a predicament where the means test does not apply for us (majority of debt = investment properties), but for the schedules I & J to work for us (to qualify for a Ch. 7) my wife & I have to continue to max out our 401k contributions annually (which we are currently doing) & continue to repay a 401k loan.

The last attorney I met with said the trustees are not going to allow us to include future 401k contributions on the Schedule J and that due to our monthly gross income & circumstances we will face great scrutiny.

Are 401k contributions an allowable expense? If so, is there a reasonable limit? I have heard that it varies by the trustee, but I guess I can't see a trustee allowing 15 or 20% of one's salary to go to 401k, which is what we need to make the schedules I/J work. Also, in a similar approach, would continued 529 college plan contributions be allowed?

Thanks!

[BKOnce]

Big Congrats!!!!... God Bless Your Family....

[lrprn]

Are 401k contributions an allowable expense? If so, is there a reasonable limit?

401K contributions are allowable, although most trustees and local courts will put a cap on the % of gross salary that can be contributed (in our district, it's 5% per filer).

Also, in a similar approach, would continued 529 college plan contributions be allowed?

Assets in the plan are protected by the state offering the plan, but depending on the trustee you get, further contributions can be halted while your Ch 13 is active. Some trustees feel that college is a privilege, not a right, so they will expect those contributions to go to your creditors instead.

Ask your lawyer what to expect from the Ch 13 trustee(s) in your area.

[lrprn]

Thanks, everyone! I am so lucky to be able to share our relief with all my friends here who understand and appreciate how special a day this truly is! Wheeeeeeeeee!

[SinkingFast]

401K contributions are allowable, although most trustees and local courts will put a cap on the % of gross salary that can be contributed (in our district, it's 5% per filer).

Assets in the plan are protected by the state offering the plan, but depending on the trustee you get, further contributions can be halted while your Ch 13 is active. Some trustees feel that college is a privilege, not a right, so they will expect those contributions to go to your creditors instead.

Ask your lawyer what to expect from the Ch 13 trustee(s) in your area.

As Lrprn noted in their District, 5% is the going 401K contribution allowable here as well. The %'age varies by District and possibly even the Trustee you draw. So be sure to check with attnys in your area.

A note about Lrprn's case,.............. They are being allowed to contribute to their retirements while paying back several loans due to their "advanced" ages. The closer you are to retirement age when filing BK, the more acceptable higher $$$ amounts going to 401K is with the BK Courts in general. Younger folks (20's, 30's, possibly even 40's) will have a harder time doing the same as Lrprn's case.

[SinkingFast]

Thanks, everyone! I am so lucky to be able to share our relief with all my friends here who understand and appreciate how special a day this truly is! Wheeeeeeeeee!

That is SOOOOOOOOO true!!

People who have not walked a mile in our shoes do not understand just how exciting your news really is!!

[uofaguy]

Thanks LPRN and Sinkingfast for the clarification. This site has been such a great help. Hopefully I will be joining you soon with a confirmed plan and ready to move on! Congrats again.

[lrprn]

A note about Lrprn's case,.............. They are being allowed to contribute to their retirements while paying back several loans due to their "advanced" ages.

Hehe! I'm sure you are all wondering just how "advanced" we are....husband is 62, I'm 56.

We're very fortunate that our bk judge stated during our hearing last October that he felt under the circumstances our retirement "double dipping" was understandable. That's the most likely reason our trustee let this go.

SF is right....there's no guarantee you will be allowed to pay on retirement "loans" and still actively contribute to your retirement even if you are as old as dirt like we are....

Talk to your lawyer to see how this situation is being handled in your local court. I hope you will be as lucky as we were.

[coma]

YAY!!! Congrats!