Judge Rules 401(k) Contributions Not A Ch. 7 Right

Law360, New York (September 13, 2006, 12:00 AM EDT) -- In a precedent-setting case, the Ninth Circuit Court of Appeals has ruled that individual debtors seeking Chapter 7 bankruptcy protection are not always entitled to include voluntary contributions to a retirement plan in calculating disposable income.

However, the court said that voluntary contributions to a retirement plan may be reasonably necessary for some debtors, and courts must therefore conduct fact-specific inquiries, which overturned the bankruptcy court’s ruling.

The court upheld that such payments were not necessary in this case based on the plaintiff’s age—33—and financial status—she...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.