Home Archives for 707(b)(2)(A)(ii)(I)

Deduct Full Secured Debt on Bankruptcy Means Test

Posted on December 24, 2009 Written by

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

Filed Under: Chapter 13, 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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