Contributions to an employee retirement plan are to be excluded from the calculation of current monthly income rather than deducted from disposable income in the Means Test. In re Vu, No. 15-41405 (Bankr. W.D. Wash. June 16, 2015). [Read more…] about Contributions to Retirement Plan Excluded from CMI
Clark v. Brooks (In re Brooks) No. 14-2856 (7th Cir.)
Type: Amicus
Date: December 11, 2014
Description: Whether debtor may categorically exclude child support from calculation of disposable income.
Result: Affirmed April 23, 2015
Child Support Exclusion Not Reduced By Expense Deduction
The Seventh Circuit rejected the trustee’s argument to limit the debtor’s child support exclusion to those expenses that are not otherwise deductible under section 1325. In re Brooks, No. 14-2856 (7th Cir. Apr. 23, 2015). [Read more…] about Child Support Exclusion Not Reduced By Expense Deduction
Strained Reading of “Derived During” Boots Chapter 7 Case
The Tenth Circuit BAP interpreted the phrase “derived during” to mean that all income received during the 6-month look-back period be included in the current monthly income calculation. Based on this, the court found that the debtor was above-median and his chapter 7 case presumptively abusive under section 707(b)(2). When the debtor failed to convert to chapter 13, the bankruptcy court dismissed the case. The BAP affirmed. In re Miller, No. 14-2 (B.A.P. 10th Cir. Oct. 8, 2014). [Read more…] about Strained Reading of “Derived During” Boots Chapter 7 Case
In re Wolf, No. 14-1346 (4th Cir.)
Type: Amicus
Date: August 4, 2014
Description: Whether above-median debtor’s projected disposable income should be calculated from the statutory formula rather than schedules I and J.
Results: Judgment affirmed November 6, 2014 (debtor won)
No Older Vehicle Expense Deduction for Above-Median Debtors
An above-median debtor may not take the older vehicle expense deduction of $200.00 when calculating his projected disposable income. In re Luedtke, No. 13-1313 (B.A.P. 9th Cir. April 9, 2014). [Read more…] about No Older Vehicle Expense Deduction for Above-Median Debtors
Projected Disposable Income Begins with Means Test
When calculating known or virtually certain changes to income or expenses, the starting point is the monthly income as shown on the means test rather than Schedules I and J. Kramer v. Bankowski (In re Kramer), No. 13-37 (B.A.P. 1st Cir. March 3, 2014). [Read more…] about Projected Disposable Income Begins with Means Test
Applicable Commitment Period Applies where No Disposable Income
Adding to a growing trend among the circuit courts, the Fourth Circuit found that above-median debtors with negative disposable income must commit to a 60-month plan under Section 1325(b)(1). Pliler v. Stearns (In re Pliler), No. 13-1445 (4th Cir. March 28, 2014), on direct appeal from, In re Pliler, 487 B.R. 682 (Bankr. E.D. N.C. Feb. 21, 2013). [Read more…] about Applicable Commitment Period Applies where No Disposable Income
A Couple Cases Concerning Child Care and Confirmation
The expense of the debtor/father’s involvement in scout camp was found not deductible as a necessary expense for the support of the debtor’s dependents. In re Knorr, No. 12-3704, 2013 WL 5550209 (Bankr. M.D. Pa. 2013). [Read more…] about A Couple Cases Concerning Child Care and Confirmation
Debtor Need Not Commit All PDI in 100% Plan
It was not enough that the Chapter 13 debtors committed to paying off their unsecured debts in their entirety; the trustee demanded that they comply with the disposable income test of Section 1325(b)(1)(B). In re Bailey, No. 13-60782 (Bankr. E.D. Ky. Nov. 21, 2013). [Read more…] about Debtor Need Not Commit All PDI in 100% Plan