ALBANY – A debtor is being forced from a Chapter 7 liquidation to a Chapter 13 repayment in part because the money now being paid on a retirement loan must be made available to creditors, even though the funds are exempt in Chapter 13.
Northern District Chief Bankruptcy Judge Robert E. Littlefield Jr. noted the legal irony in In re DeJoy, 11-10268, but said the “mechanical formula” required under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 restricts judicial discretion and leaves no choice.
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