Debtor’s 401(k) loans did not give rise to “claim,” “debt,” or “secured debt.”

Loans that were taken by a Chapter 7 debtor from his 401(k) retirement savings plan did not give rise to a “claim” against the debtor or the bankruptcy estate or to a “debt” under Dallas Bankruptcy attorney Code. Notwithstanding the documentation surrounding the loans, the debtor borrowed his own money and could validly and lawfully elect not to repay the loans, even though, by doing so, he would incur income taxes and penalties. Consequently, since they were not a “debt,” the loans were not “secured debts” the payments on which the debtors could deduct in calculating their current monthly income under the means test to determine whether a presumption of abuse of Chapter 7 arose in their case.

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