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 ...
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Category Archives: Means Test
Bankruptcy Means Test Meaner as Family Incomes Drop
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 ...
Surrendered Collateral Doesn’t Count on Bankruptcy Means Test?
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 ...
Income and Expenses After Bankruptcy Change Chapter 13 Means Test
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 ...
Deviation from Bankruptcy Means Test for Expenses, Too
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 ...
How Do I Deduct My Non-Filing Spouse’s Expenses on the Bankruptcy Means Test?
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 not ...
Cram Down Value Used for Means Test in Wichita Bankruptcies
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, ...
401(k) Withdrawal Is Income for Means Test
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
U.S. Supreme Court Takes Topeka Bankruptcy Case
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 the bankruptcy ...
Means Test Allowances
U.S. Trustee on means testing national expense_standards for means test Kansas housing charts for means test
Out of Date Means Test Guidelines
Out of Date Means Test Income Guidelines New Income Guidelines After Halloween Here are the new Kansas means test income figures for cases filed on or after November 1, 2009: one earner household $41,357 (up $353) two person household $57,767 (up $1621) three person household $63,438 (up $193) four person ...
Timeshare Debt Allowed on Means Test, Adult Child Disallowed
MORE LINE BY LINES OF B22C In re Hays, Case No 07-41285 April, 2008, Judge Karlin 13 Trustee objections to debtor’s attempts to claim living expenses for non-dependent debtors as well as for secured debt on a timeshare. Court followed Law and disallowed adult child expenses. The Court allowed the debt on the timeshare to be deducted. The ...
Nonworking Adult Son Not Counted in Household
B22C CASE, LINE BY LINE… In re Law, Case No. 07-40863 April 2008, Judge Karlin Court sustained 13 Trustee’s objection to confirmation as debtor included: adult son in household size, tax levy on Line 33 and duplicated it on Line 49 and unencumbered vehicle on line 28. The decision is a good analysis of the status of B22C ...
Deduct Full Secured Debt on Bankruptcy Means Test
OK FOR CHAPTER 13 DEBTORS TO TAKE B22C DEDUCTION FOR FULL PAYMENT RATHER THAN CRAM DOWN AMOUNT In re Allen, Case No. 07-41327 February 2008, Judge Karlin Objected to confirmation on the basis that Debtor's means test calculations erroneously included the full amount of the pre-petition car payments ...
Car Deduction Allowed on Means Test, Reversed by District Court
CAR DEDUCTIONS ALLOWED EVEN THOUGH NO LIEN In re Thomas, Case No 06-21108 In re Camacho, Case No. 06-20729 October 2007, Judge Berger UST Motion To Dismiss under 707(b) for presumed abuse based upon totality of circumstances was denied. The Court concluded that the debtors are entitled to claim vehicle ownership for expenses, even though debtors did not have ...
Means Test Form Controls Unless Significant Changes in Circumstances
B22C CONTROLS UNLESS SIGNIFICANT CHANGES IN CIRCUMSTANCES In re Lanning, Case No. 06-41037 May 2007, Judge Karlin Over the Chapter 13 Trustee’s objection, the Court confirmed the plan because of significant changes in circumstances at the time of filing that caused Line 58 on B22C to be higher than what the debtor could afford to pay. BAP and ...
How Long Does Chapter 13 Last if My Income is Below Median?
BELOW MEDIAN MUST RUN 36 MONTHS, B22C IS TEMPORAL In re Daniel, Case No. 06-20714 December 2006, Judge Somers In a Below Median case, debtor’s income is determined by B22C and expenses by Schedule J and must “run” for 36 months (The Applicable Commitment Period) or pay 100% of all allowed unsecured claims. B22C is temporal, rather than ...
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Jill Michaux & Mark Neis
Attorneys at Law
Bankruptcy Law Office
Neis & Michaux, P.A.
825 Bank of America Tower
534 S. Kansas Ave., Ste. 825
Topeka, KS 66603-3446
T: 785-354-1471
F: 785-354-1170
lawyers@neismichaux.com
Board Certified in
Consumer Bankruptcy Law
by the American Board of
Certification