Craig W. Andresen is a consumer bankruptcy lawyer in Bloomington, Minnesota, with 22 yearsâ€™ experience in consumer and small business bankruptcy cases. He is the Minnesota chair of the National Association of Consumer Bankruptcy Attorneys, and is a member of the Minnesota State Bar Associationâ€™s Bankruptcy Section. Mr. Andresen lectures often on the topic of consumer bankruptcy at local and national legal seminars.
Enter the total average monthly payroll deductions that are required for your employment, such as mandatory retirement account contributions, union dues, and uniform costs. Do not include discretionary amounts, such as non-mandatory 401(k) contributions.
For chapter 7 cases, there is no further guidance. For chapter 13 cases, another line asks for any retirement account contributions, and also payments for retirement account loans. This is because the text of the bankruptcy law allows, in chapter 13, a deduction from income beyond what the IRS standards allow. In chapter 13 cases, there is not much debate over what is an allowable deduction on this part of the means test due to this additional language allowing retirement loans and normal retirement account contributions to be deducted.