In Re Jaiyesimi
This case consolidates two Chapter 13 bankruptcy petitions concerning whether debtors' pension loan repayments and contributions constitute 'disposable income' under 11 U.S.C. § 1325(b). Debtors Adeyemi O. Jaiyesimi, Olu-funke E. Jaiyesimi, and Sharlene De Ann Taylor moved to discontinue these deductions, while the Standing Chapter 13 Trustee objected to their plans, arguing these funds should be included in the bankruptcy estate. The New York City Employees’ Retirement System (NYCERS), represented by Corporation Counsel, contended the payments were mandatory. Judge Cornelius Blackshear of the Southern District of New York Bankruptcy Court ruled that both pension loan repayments and pension contributions are disposable income and are not mandatory conditions of employment, thus ordering their discontinuation as separate payroll deductions and requiring their inclusion in the debtors' reorganization plans.