Tax Refunds, Retirement Deductions and the Means Test

Debtors are not entitled to a deduction for Mr. Stanley’s monthly
repayments of their retirement loan. The majority of courts that have considered whether debtors are allowed deductions for loan repayments on their retirement savings plans have found that no such deduction should be allowed. The [South Carolina] Court agrees with the majority approach. In re Stanley

Debtors also omitted their substantial tax refund of from the calculation. Debtors over-withheld. Debtors have recently been informed they owe Debtors should be given a credit for this repayment obligation; however, this credit will have a minimal impact on Debtor’s monthly disposable income. With the addition of Debtors’ tax refund, Debtors have monthly disposable income. In re Stanley