Home Archives for 1325(b)(1)(B)

401(k) Withdrawal Is Income for Means Test

Posted on January 4, 2010 Written by

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 read of the status of the law in
this area of its date of issuance, according to a digest of the case by Jan Hamilton, Trustee.

Filed Under: Court Rulings, Means Test Tagged: , , , , , , , , ,

My Car Is Paid For, Can I Deduct Ownership Expense on Means Test?

Posted on December 14, 2009 Written by

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

Filed Under: Court Rulings, Filing Bankruptcy, Means Test, Vehicles Tagged: , , , , , , , , , ,
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