If you file Chapter 13 and are in the process of paying creditors back, if you are retiring and receive a 403b retirement benefits package, are you obligated to give some of the money to the creditors?
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So many things happen to folks during their life, but I am glad I don't look like all the things I have been through. -
The income from the 403b should be included in the calculation of the plan payment. If at the time the petition is filed, the debtor knows they will be retiring, then any resulting change in income should be factored into the plan. If retirement was not taken into account when the plan was confirmed, then whether and how the plan is affected depends on whether post retirement disposable income is different then pre retirement disposable income and whether the debtor is required to report the change in income to the trustee. The debtor should discuss any changes in income with his/her attorney.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!
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