by NCBRC Editor on
The Ninth Circuit BAP found that a Chapter 13 plan could not be determined to be in bad faith solely based on debtors’ deduction of payments made on secured debts, without regard to the “necessity” of those debts, and their exclusion of social security income from their calculation of disposable income. Drummond v. Welsh (In re Welsh), No. 10-1465 (B.A.P. 9th Cir. Feb. 17, 2012).
Welsh judgment [Read more…] about Bad Faith Cannot Be Based on Income Determined in Compliance with Code
by NCBRC Editor on
In an opinion that strains to uphold the conclusion that the “core purpose” of BACPA is to “maximize[e] creditor’s recover[y],” the Sixth Circuit has held that “post-petition income that becomes available to debtors after their 401(k) loans are fully repaid is ‘projected disposable income’ that must be turned over to the trustee for distribution to unsecured creditors pursuant to § 1325(b)(1)(B) and may not be used to fund voluntary 401(k) plans.” Seafort v. Burden, No. 10-6248 (6th Cir. Feb. 15, 2012). The debtor appealed the Bankruptcy Appellate Panel’s reversal of the Bankruptcy Court’s decision in the debtor’s favor.
Seafort Opinion [Read more…] about Post-Petition Funds from 401(k) Loan Payoff May Not Be Voluntarily Contributed to Retirement Fund
by Tara Twomey on
Type: Amicus
Date: December 28, 2009
Description: “Mechnical” vs. “forward-looking” approach to projected disposable income
Result: Affirmed. Debtor won.
by Tara Twomey on
Type: Amicus
Date: March 3, 2008
Description: Vehicle expense deduction
Result: Judgment affirmed – debtor lost
Ransom SCtOpinion
