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In re Christopher Lee Robinson and Rebekah Lee Robinson

Bankr. No.: 
Date of Decision: 
November 3, 2011
Whether a chapter 7 debtor's 401(k) contributions should be considered in determining his ability to pay under 11 U.S.C. § 707(b)?
Yes. While Congress chose–in 11 U.S.C. § 541(b)(7)–to exclude a debtor's 401(k) contributions from his disposable income in a chapter 13 case, it did not choose to likewise exclude such contributions from the Court's consideration in determining whether to grant a motion to dismiss for abuse under § 707(b). Moreover, the issue under § 707(b) is not whether a debtor could be compelled to pay his creditors, but whether a debtor has the ability to pay his creditors, if he were to choose to do so.
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