The debtor properly excluded $400.00/month in child support payments from her calculation of disposable income despite deducting child care expenses elsewhere on the means test. Clark v. Brooks (In re Brooks), No. 14-1031 (C.D. Ill. July 21, 2014). [Read more…] about Child Support Properly Deducted from Means Test
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
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
Ninth Circuit en Banc Decision Overrules Kagenveama
In a blow to debtors, the Ninth Circuit, in an en banc decision, has reversed its position with respect to the applicable commitment period when the debtor has less than or equal to zero disposable income. Danielson v. Flores (In re Flores), No. 11-55452 (9th Cir. Aug. 29, 2013). [Read more…] about Ninth Circuit en Banc Decision Overrules Kagenveama
Fourth Circuit Takes on Applicable Commitment Period Issue
The Fourth Circuit has accepted two direct appeals presenting the issue of whether the applicable commitment period for a chapter 13 plan applies when there is no projected disposable income. Both cases first treat the issue of whether an expected change in payments during the plan should be considered when determining the debtor’s projected disposable income at the outset, and then deal with the relevance of the applicable commitment period where the debtor has zero or negative disposable income as calculated by the means test. [Read more…] about Fourth Circuit Takes on Applicable Commitment Period Issue
Social Security Income May Not Be Considered in Good Faith Analysis
The Ninth Circuit today held that “Congress’s adoption of the BAPCPA forecloses a court’s consideration of a debtor’s Social Security income or a debtor’s payments to secured creditors as part of the inquiry into good faith under 11 U.S.C. § 1325(a).” Drummond v. Welsh (In re Welsh), No. 12-60009 (9th Cir. March 25, 2013), aff’g Drummond v. Welsh (In re Welsh), 465 B.R. 843 (B.A.P. 9th Cir. 2012).
[Read more…] about Social Security Income May Not Be Considered in Good Faith Analysis
Kagenveama Survives Direct Assault
Wielding Hamilton v. Lanning, 130 S. Ct. 2464 (2010), the trustee in the Ninth Circuit case of In re Flores, launched a full-scale attack on Maney v. Kagenveama (In re Kagenveama), 541 F.3d 868 (9th Cir. 2008). Kagenveama won. The Ninth Circuit stood by its previous position that an above-median debtor with zero or negative disposable income does not need to confirm a 60-month plan under section 1325(b). Danielson v. Flores (In re Flores), No. 11-55452 (9th Cir. Aug. 31, 2012). NACBA assisted in drafting the debtor’s brief in this case. [Read more…] about Kagenveama Survives Direct Assault
Post-Petition 401(k) Contributions
Two recent cases came out the wrong way on the issue of whether a debtor may deduct post-petition contributions to his 401(k) from the calculation of disposable income. In re Parks, No. 11-1366 (B.A.P. 9th Cir. August 6, 2012), and In re Jenkins, No. 11-16960 (Bankr. E.D. Tenn. July 5, 2012). [Read more…] about Post-Petition 401(k) Contributions