The bankruptcy means test gets a little nicer to Kansas consumer debtors on March 15, 2011, when new, higher median family income figures go into effect. Kansas families will be allowed to have more gross income to pass the bankruptcy means test on the first round of analysis. The median family income is used as…
We watched the arguments before the U.S. Supreme Court in Washington, D.C., yesterday in the bankruptcy case of Hamilton v. Lanning. We are not involved in this case. We attended as observers. The case deals with the formula for determining how much a debtor has to pay her general creditors in a chapter 13 bankruptcy…
As the economy worsens, unemployment rises and family incomes are dropping, getting bankruptcy help gets a little tougher. The bankruptcy income guidelines go down a few hundred dollars for Kansas cases filed on or after March 15, 2010. While this change probably won’t disqualify many debtors, the downward trend is disturbing and more evidence the…
22C EXPENSE NOT PERMITTED ON SURRENDERED COLLATERAL In re Miller, Case No. 07-22927 December 2008, Judge Somers This decision ties to the concepts enunciated in the various Lanning decisions, i.e., to what extent may post petition changes in circumstances be considered in determining what is to be paid by an above the line debtor. Digest…
REITERATION THAT INCOME AND EXPENSE CHANGES MAY BE CONSIDERED POST PETITION IN 13. In re Tholl, Case No. 07-22677 December 2008, Judge Somers Court reviewed and followed the Melvin decision regarding changes of income and expenses after the filing of the chapter 13 bankruptcy but prior to confirmation of the chapter 13 bankruptcy plan.
LANNING EXTENDED TO EXPENSE SIDE In re Melvin, Case No. 07-22352 December 2008 Judge Somers Court extended the Lanning analysis and found there was no binding precedent on the issue of whether actual of 22C expenses were mandated and found that 22C expenses may be deviated from also. This is consistent with dicta in Lanning,…
HOW EXACTLY DO WE DEDUCT ‘MARITAL ADJUSTMENTS’? In re Dugan, Case No. 07-40899 August, 2008, Judge Karlin Chapter 13 Trustee objections to debtor’s attempts to include a marital adjustment on Lines 13 and 19 for a non-filing spouse and a deduction for transportation expenses. Court allowed, in theory, the marital deduction, but found it had…
A DEBTOR MUST USE THE STRIPPED/CRAMMED DOWN AMOUNT FOR PURPOSES OF CURRENT MONTHLY INCOME (CMI) ON LINE 47 OF B22C In re Hoss, Case No. 08-10365 In re Arroyo, Case No. 07-12779 August 2008, Judge Nugent In above median income (AMI) cases, debtors sought to deduct contract payments, rather than the stripped off/crammed down amounts….
401(K) DISBURSEMENT PRE PETITION IS CURRENT MONTHLY INCOME BUT NOT PROJECTED DISPOSBLE INCOME In re DeThample, Case No 07-11829 July 5, 2008, Judge Nugent Under 1325(b)(1)(B), a singular, one time disbursement is “income” for purposes of determining Current Monthly Income (CMI), but followed Judge Karlin’s Lanning decision in determining what constituted Projected Disposable Income (PDI)….
A Topeka, Kansas, consumer bankruptcy case is pending in the U.S. Supreme Court. It involves the Topeka chapter 13 trustee objecting to Stephanie Lanning’s bankruptcy plan. Lanning had taken a buyout and left her job at Payless Shoesource. She was working at Joann’s Fabrics for less money when her bankruptcy was filed. When Lanning took…
U.S. Trustee on means testing national expense_standards for means test Kansas housing charts for means test
