On February 15, 2012, the Sixth Circuit Court of Appeals (which governs bankruptcies filed in the Greater Cincinnati and Dayton areas) issued a decision in the case of In re Seafort, 669 F.3d 662 (6th Cir. 2012). Although this decision did not directly affect my Greater Cincinnati and Dayton clients, the Court of Appeals implied it might effect a terrible change in the coming months. Currently, Chapter 7 and Chapter 13 bankruptcy debtors may contribute a reasonable amount each pay period toward a qualified retirement plan, such as a pension, 401(k), or 403(b). Over the past several years, a contribution of eight percent or less has been deemed reasonable, depending upon the amount of debt to be repaid, the total amount of household income and expenses, and my clients’ ages. The Court of Appeals hinted in the Seafort case, however, that no contribution should be permissible. I believe this to be a horrible decision. Although I understand the public interest in ensuring that as much debt as possible is repaid, I believe it is important to make the necessary change of lifestyle to ensure long term financial responsibility and success. This includes saving for retirement. So, if you are considering bankruptcy, save as much in your qualified retirement plans as possible before it is too late.