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 means [...]
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Tag Archive: Means Test
Bankruptcy Means Test Meaner as Family Incomes Drop
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 is to be paid by an above the line debtor. Digest by Jan Hamilton, Trustee.
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 prior to confirmation of the chapter 13 bankruptcy plan.
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 expenses may be deviated from also. This is consistent with dicta in Lanning, and Judge Nugent [...]
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 been supported with any
detail. [...]
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, debtors sought to deduct contract payments, rather than the stripped off/crammed down amounts. The Court sustained the Chapter [...]
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 Lanning decision in determining what constituted Projected Disposable Income (PDI). This is a good [...]
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
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 [...]
My Income Is Above Median, How Long Will My Chapter 13 Plan Run?
B22C CONTROLS, OR IF DEBTOR USES I AND J, MUST HAVE A FIVE YEAR PLAN
In re Beckerle, Case No.06-20572
April 2007, Judge Berger
ACP is a time frame of either 3 or 5 years and not a multiplier. B22C is a starting place in determining projected disposable income to be received in the 5-year period. A negative [...]
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 [...]
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 [...]
My Income Is Below Median, How Long Do I Pay My Chapter 13 Payments?
BELOW THE LINE DEBTOR MUST RUN 36 MONTHS
In re Pohl, Case No. 06-41236
May 2007, Judge Karlin
The Court determined that a below the line debtor’s case must “run” 36 months, unless it
pays off all claims in full, citing 1325(b)(4). Below the line disposable income
determined by Schedule J, since the bottom half of B22C does not get [...]
Topeka Debtors Allowed Means Test Deduction for Cars With No Liens
EDITOR UPDATE: This post is out of date. Judge Karlin reverted to her original ruling in In re Law after the Pearson decision was vacated. This issue is currently pending the the U.S. Court for the Tenth Circuit so we should have a binding ruling soon. December 13, 2009.
Topeka Bankruptcy Judge Janice Miller Karlin announced [...]
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Jill Michaux & Mark Neis
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Bankruptcy Law Office
Neis & Michaux, P.A.
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Topeka, KS 66603-3446
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