national expense_standards for means test
Kansas housing charts for means test
1/1/10
Means Test Allowances
12/31/09
Out of Date Means Test Guidelines
Out of Date Means Test Income Guidelines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 household $72,610 (down $2016)
- add $6900 for each individual in the household in excess of four.
Income Guidelines for Cases Filed on or after March 15, 2009, through October 31, 2009
The Kansas median income has increased giving debtors a raise on the bankruptcy means test for cases filed on or after March 15, 2009. The new figures by family size are:
- one earner $41,004
- two people $56,146
- three people $63,245
- four people $74,626
* Add $6,900 for each individual in excess of 4.
Guidelines for Cases File on or after October 1, 2008, but before March 15, 2009, see below
Here are the bankruptcy income guidelines that went into effect October 1, 2008:
- 1 earner $39,488
- 2-person families $54,070
- 3-person families $60,906
- 4-person families $71,867
- 5-person families $68,548
- 6-person families $63,075
12/26/09
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 decision is very thorough and is a recommended read.
Digest by: Jan Hamilton, Trustee
12/25/09
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 case law as of the date of the decision.
Digest by: Jan Hamilton, Trustee
12/24/09
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 rather than the reduced or crammed-down amounts. In analyzing 1325(b)(1), the Court found that 707(b)(2)(A)(iii) applies and that Debtors need not only list the amounts they will actually pay through the plan. There is a split of authority on this important issue. This case was not appealed so no appellate decision is in the immediate future for the 10th Circuit. See the Hoss and Arroyo decision by Judge Nugent for the opposite result.
Digest by: Jan Hamilton, Trustee
12/23/09
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 liens or leases on the vehicles. (See In Re Howell, 06-11652 for opposing view from Judge Nugent.). Judge Lungstrum subsequently reversed and remanded Thomas, 382 B.R. 793 (D. Kan. 2008).
Digest by: Jan Hamilton, Trustee
12/21/09
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 10th Circuit Court of Appeals affirmed, Petition for Cert to U.S. Supreme Court pending. Lanning controls in Judge Karlin’s court, until, if and when, the decision is overturned.
Digest by: Jan Hamilton, Trustee
12/20/09
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 a multiplier. Read carefully.
Digest by: Jan Hamilton, Trustee
12/18/09
Who Gets Paid Out of Chapter 13 Pool?
WHAT GETS PAID OUT OF THE B22C POOL?
In re Puetz, Case No 0620756
June 2007, Judge Berger
B22C presumptively shows debtors projected disposable income, schedules I and J no longer determine plan payment for above median debtor, but, rather, demonstrate feasibility unless there are special circumstances justifying adjustments to B22C. This is not the plan payment but is what goes to “unsecured creditors”, which are general unsecured claims, anticipated attorney fees but not Chapter 13 Trustee fees or priority claims as these are already netted out in the B22C calculations. Contributions and 401(k) loan repayments are not included in calculating disposable income.
Digest by: Jan Hamilton, Trustee
12/15/09
My Wife Didn't File Bankruptcy, Can I Deduct Her Car Payment on My Means Test?
NON DEBTOR EXPENSES NOT ALLOWED ON B22C
In re Shahan, Case No. 06-11638
April 2007, Judge Nugent
Above median debtor filed 13; wife did not. Trustee objected to confirmation on basis of various B22C deductions. Debtor was allowed to take a marital deduction on Line 19 from his paycheck, which represented mandatory withholdings from her paycheck and, as such, was not dedicated to household expenses. Debtor sought to deduct future payments on secured debts for wife’s debts on Line 47. Since these were not debtor’s expenses, they were not allowed. Additionally, debtor sought to deduct $415.00 on line 59. This includes wife’s monthly recreational expenses, loan repayment to family, tax prep fees and $200.00 per month to help an adult daughter. These are to be actual expenses. None of these qualified, except for the tax preparation expenses as analyzed by the Court.
Digest By: Jan Hamilton, Trustee
12/14/09
My Car Is Paid For, Can I Deduct Ownership Expense on Means Test?
OWNERSHIP EXPENSE NOT ALLOWED IF VEHICLE PAID FOR
In re Howell, Case No. 06-11652
April 2007, Judge Nugent
Trustee objected to 13 confirmation under 1325(b)(1)(B) on basis that debtors projected disposable income was too low because they were deducted an ownership expense on Line 28 of B22C even though vehicle was fully paid for and even though they had claimed a standard vehicle operating allowance on Line 27. Objection Sustained, even though 707(b) (2) (A) (ii) (I) and B22C do not offer specific guidance. Judge Nugent rejected the other view on the basis that an expense is not “applicable” if it is not actually incurred.
Digest by: Jan Hamilton, Trustee
