by In a move that could have sweeping implications for Chapter 13 bankruptcy cases nationwide, Martha G. Bronitsky, the Chapter 13 Trustee, has filed a petition for certiorari with the Supreme Court in In re Saldana. The case centers on whether voluntary contributions to retirement accounts should be excluded from a debtor’s disposable income calculation. The Ninth Circuit’s decision in In re Saldana sided with the debtor, holding that voluntary retirement contributions are shielded from creditors, a ruling that some argue disrupts the balance between debtor protections and creditor rights under the Bankruptcy Code. Now, the Supreme Court is being asked to step in, potentially impacting thousands of Chapter 13 cases filed each year.
The National Consumer Bankruptcy Rights Center (NCBRC) and the National Association of Consumer Bankruptcy Attorneys (NACBA) have been strong advocates for preserving the rights of consumer debtors and ensuring the integrity of the bankruptcy system. We remain committed to supporting Jorden Marie Saldana as this case progresses, including filing amicus briefs to amplify the voices of debtors nationwide. At stake is not only Saldana’s ability to prioritize her financial future but also the broader rights of Chapter 13 debtors to save for retirement while navigating bankruptcy. Stay tuned as this pivotal case unfolds, with the potential to shape bankruptcy law for years to come.