In my last post, I discussed retirement contributions within the Chapter 7 context. Our attention now turns to retirement contributions in a Chapter 13 bankruptcy.
II. Retirement Contributions In A Chapter 13 Bankruptcy
In discussing Chapter 7, I referred to Form 22A. The Chapter 13 analogue is Form 22C, which is very similar to Form 22A; but there are some differences.
One difference is Form 22C’s line 55, which permits a debtor to list “Qualified retirement deductions.” There is no analogue to Form 22C’s line 55 in Form 22A. This indicates that the Commission that created Form 22 (Form 22A for Chapter 7, Form 22B for Chapter 11, and Form 22C for Chapter 13) believed that Congress wanted Chapter 13 debtors, but not Chapter 7 debtors, to able to contribute to their retirement —presumably to “encourage” debtors to go into Chapter 13, so that their creditors would receive something through the Chapter 13 plan.
Why did the Commission include line 55 in Form 22C? The best explanation is found in 11 U.S.C. § 541(b)(7). A little background will help to understand that statutory subsection and its application to the creation of Form 22C.