contract annuity(pension) income

[starchaser]

What is the name of your state (only U.S. law)? Nevada

Seems Annuity income(contract) refension/employer/employee contract is federally exempt in bankruptcy, as is social security income. I am experiencing beginning of filing chapter 13, wife and my income,and all federal deductions, median for Nevada, means test has no disposable income or very little. Since m y problem is back IRS taxes, from what I read Annuity is suppose to be protected, yet my attorney says the income from the annuity has to be placed in monthly income to establish the disposable income? Thats a double sword, one hand its protected and the other is taking it away? Social security is not listed as income. I am 68 years iold and I wiull only have $450 left of my annuity every month from $2330! Doesn't seem like that was the intention of the court system when these regulations were set?

[cosine]

Originally Posted by starchaser

What is the name of your state (only U.S. law)? Nevada

Seems Annuity income(contract) refension/employer/employee contract is federally exempt in bankruptcy, as is social security income. I am experiencing beginning of filing chapter 13, wife and my income,and all federal deductions, median for Nevada, means test has no disposable income or very little. Since m y problem is back IRS taxes, from what I read Annuity is suppose to be protected, yet my attorney says the income from the annuity has to be placed in monthly income to establish the disposable income? Thats a double sword, one hand its protected and the other is taking it away? Social security is not listed as income. I am 68 years iold and I wiull only have $450 left of my annuity every month from $2330! Doesn't seem like that was the intention of the court system when these regulations were set?

It's income, so it's a resource for you to pay your debts. It's just not going to be cashed out at once. The intentions are the statutes, and the courts just carry them out. What is the term of your chapter 13 plan?

[starchaser]

term is 5years, places me at a disposable monthly at $2,000, counting the ANNUITY! How can you justify the statue states Contract ANNUITY(pension Group plan) is protected under ERISA , and can not be levied by creditors, but yet the income can be listed for creditobrs to access? That doesn't make logical sense to this country boys brain? Social security pension is protected and the income and income is not required to be listed in Bankruptcy? My annuity is a group plan, based on years of service and age. If its regulated by ERISA, so is the social security income for retiree's, then this ANNUITY should be recognized as same status as afforded social security income. THIS IS A DOUBLE SWORD,

[bigun]

You need to understand that a Chapter 13 bk is another world.
While it's true your source of income may have been protected from creditors had you not filed and just fended off lawsuits that's not the case in a Chapter 13.
The code requires all disposable income to be available to pay creditors and that means from any source.
You mentioned back taxes as aproblem. Did they not fit the criteria to be discharged in a Chapter 7?

[efflandt]

Your protection, similar to an IRA or 401(k), is that it is protected from creditors as long as it remains in the fund. But once money is distributed from the fund, it is up for grabs. Social security payments may be protected, but any income beyond that is not.