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: A Texas Bankruptcy Lawyer's Blog

Update on Deductibility of 401k Loan Payments Under Means Test

By Steve Sather

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This blog previously reported on Judge Larry Kelly's decision in In re Otero which allowed payments on 401k loans to be deducted under the chapter 7 means test. http://stevesathersbankruptcynews.blogspot.com/2006_11_01_archive.html. That decision was subsequently reversed on appeal by the U.S. District Court. McVay vs. Otero, 371 B.R. 190 (W.D. Tex. 4/26/07). The District Court looked at the same language as Judge Kelly and concluded that a loan against a 401k plan was NOT a debt, so that read more

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Full post as published by A Texas Bankruptcy Lawyer's Blog on December 21, 2007 (boomark / email).

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