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Ice Miller LLP via NCPERS PERSist
Sept. 7, 2022
"[M]any courts have taken the view that a pension plan loan does not create a 'debt' for purposes of the bankruptcy.... [A] bankruptcy court has challenged this seemingly well established concept ... [If] pension plan loans are treated as 'debts' ... by more bankruptcy courts, then pension plans may face increased litigation arising from participant bankruptcies. This could include ... efforts by a chapter 7 trustee to claw back loan repayments made prior to bankruptcy[.]" [Montoya v. Dubbin (In re Dubbin), No. 19-12040-17 Adv. 21-1004-t (Bankr. D.N.M. Aug. 6, 2021)]
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