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Sixth Circuit: Chapter 13 Debtors Can Shield Ongoing 401(k) Contributions from Creditors in Bankruptcy (PDF)
U.S. Court of Appeals for the Sixth Circuit Link to more items from this source
June 3, 2020

"[We] conclude that the hanging paragraph is best read to exclude from disposable income the monthly 401(k)-contribution amount that Davis's employer withheld from her wages prior to her bankruptcy. That interpretation reads the amendment to Section 541(b), which added the hanging paragraph, in a way that actually amends the statute. It also gives a meaningful effect -- one not already accomplished by Section 1325(b)(2) -- to Congress's instruction in Section 541(b)(7) that 401(k) contributions 'shall not constitute disposable income.' The Trustee's proposed interpretation fails on these objectives." [In re Davis, No. 19-3117 (6th Cir. Jun. 1, 2020)]

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