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§ 1325(b)(1)

In re Luedtke

Ruling
Old vehicle expense consistent with IRS guidelines could be deducted from disposable income calculation.
Procedural posture

Chapter 13 trustee objected to confirmation of the debtors' plan under the "disposable income" requirement of 11 U.S.C.S. § 1325(b)(1).

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Consumer opinion summary, case decided on June 17, 2013 , LexisNexis #0713-133

In re Evon

Ruling
Debtors who paid full amount due before end of five-year term found to have completed plan.
Procedural posture

Debtors filed a motion for a declaration that their chapter 13 plan had been paid in full, even though their median income placed them in the "five-year-plan" category of 11 U.S.C.S. § 1325(b)(1)(B) and (b)(4)(A)(ii)(II) and less than three years had passed since their plan was confirmed.

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Consumer opinion summary, case decided on March 21, 2013 , LexisNexis #0413-137

In re Churchill

Ruling
Confirmation denied due to understatement of projected disposable income.
Procedural posture

Debtor moved for confirmation of his second amended plan. The chapter 13 trustee objected to confirmation of the plan, claiming that debtor understated his projected disposable income in violation of 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on March 06, 2013 , LexisNexis #0713-066

In re Barnes

Ruling
Early termination clause was void and plan could only be confirmed if providing for full applicable commitment period.
Procedural posture

Trustee objected to a chapter 13 plan proposed by debtor, a below-median income debtor, and sought dismissal for failure to file a plan in good faith and failure to pay required amounts for the entire "applicable commitment period" (ACP) per 11 U.S.C.S. § 1325(b)(1). Issues included whether the plan's early termination (ET) clause rendered it non-confirmable and whether it was an attorney-fee only plan that was not proposed in good faith.

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Consumer opinion summary, case decided on January 15, 2013 , LexisNexis #0213-024

In re Tedder

Ruling
Early termination provision was void but plan could otherwise be properly confirmed.
Procedural posture

Trustee objected to a chapter 13 plan proposed by debtors and sought dismissal of the case for failure to file a plan in good faith and failure to pay required amounts for the entirety of the applicable commitment period (ACP) per 11 U.S.C.S. § 1325(b)(1). Issues included whether the plan's early termination (ET) clause rendered it non-confirmable and whether it was an attorney-fee only scheme that was not proposed in good faith.

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Consumer opinion summary, case decided on January 14, 2013 , LexisNexis #0213-025

In re Scott

Ruling
Social security benefits were not properly included in projected disposable income calculation.
Procedural posture

Before the court were two chapter 13 cases where the trustee objected to confirmation because the debtors were not including certain social security benefits in the calculation of "projected disposable income" under 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on January 11, 2013 , LexisNexis #0213-026

In re Ballew

Ruling
Applicable commitment period only applied to debtors making payments based on positive projected disposable income.
Procedural posture

Trustee sought dismissal of numerous chapter 13 cases on claims including that some debtors had failed to contribute their projected disposable income (PDI) to pay unsecured creditors per 11 U.S.C.S. § 1325(b)(1)(B) based on claims that the presence of early termination language in some of the plans and the use of plan terms of less than 5 years in others improperly resulted in unsecured creditors receiving less than such debtor's PDI.

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Consumer opinion summary, case decided on January 11, 2013 , LexisNexis #0213-027

In re Grabarczyk

Ruling
Confirmation denied due to debtors' failure to devote all projected disposable income to plan.
Procedural posture

A chapter 13 Trustee objected to the confirmation of debtors' amended plan, arguing that the amended plan did not meet the projected disposable income test of 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on November 06, 2012 , LexisNexis #1112-135

In re Hersh

Ruling
Confirmation denied due to failure to apply all projected disposable income to payment of unsecured creditors.
Procedural posture

A bankruptcy debtor proposed a plan which provided for payment to creditors of the debtor's projected disposable income based on support payments from the debtor's estranged spouse. A creditor objected to confirmation of the debtor's plan on the ground that not all of the debtor's projected disposable income was applied to the plan as required by 11 U.S.C.S. 1325(b)(1).

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Consumer opinion summary, case decided on November 02, 2012 , LexisNexis #1212-031

Beaulieu v. Ragos (In re Ragos)

Ruling
Social Security income was properly excluded from projected disposable income calculation.
Procedural posture

Bankruptcy debtors voluntarily filed a joint chapter 13 bankruptcy petition. The chapter 13 trustee objected to confirmation of the debtors' plan because the debtors did not dedicate 100% of their social security income to the plan for payment to creditors. After a hearing, U. S. Bankruptcy Court for the Eastern District of Louisiana rejected the trustee's arguments. The trustee appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on October 29, 2012 , LexisNexis #1112-101