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§ 1325(b)(1)(B)

In re Baker

Ruling
40-month commitment period was appropriate for below-median debtor.
Procedural posture

A trustee filed a motion to dismiss the debtors' chapter 13 case, pursuant to 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on January 30, 2009 , LexisNexis #0409-132

In re Richardson

Ruling
Clear commercial intent expressed in plain language of code allowed debtor to deduct payments secured by property intended for surrender.
Procedural posture

The chapter 13 Trustee filed an objection to confirmation of the debtors' proposed chapter 13 plan. The Trustee contended that the debtors, who had above-median income, were not permitted to deduct secured debt payments on property that was being surrendered. Thus, the Trustee contended that the plan failed the projected disposable income requirement of 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on January 08, 2009 , LexisNexis #0609-023

In re Michaud

Ruling
Confirmation denied due to debtor's failure to devote income tax refund to plan.
Procedural posture

In three chapter 13 cases, the trustee objected to confirmation of the debtors'chapter 13 plans on the grounds that the debtors were not using all of their disposable income to fund their chapter 13 plans, as required by 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on December 30, 2008 , LexisNexis #0209-130

In re Almonte

Ruling
Credit card cash advances did not need to be included in projected disposable income calculation.
Procedural posture

Debtor filed a petition under chapter 13 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. The trustee filed an objection to confirmation of the debtor's chapter 13 plan, arguing, inter alia, that the plan could not be confirmed under 11 U.S.C.S. § 1325 because the debtor did not include credit card cash advances he received before he declared bankruptcy as part of his current monthly income (CMI).

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Consumer opinion summary, case decided on December 08, 2008 , LexisNexis #0109-063

Hamilton v. Lannging (In re Lannging)

Ruling
Calculation of projected disposable income adjusting for future lower income was proper.
Procedural posture

Appellant bankruptcy trustee objected to a bankruptcy debtor's proposed plan which calculated projected disposable income under 11 U.S.C.S. § 1325(b)(1)(B) based on expected future income rather than historical income. The trustee appealed the judgment of the Bankruptcy Appellate Panel for the Tenth Circuit which affirmed confirmation of the debtor's plan.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on November 13, 2008 , LexisNexis #1208-089

In re Royal

Ruling
Confirmation denied where trustee rebutted presumption of accuracy of projected disposable income showing debtor was not committing sufficient income to plan.
Procedural posture

This matter came before the court on the objection to claim of exemption filed by the chapter 13 trustee, objecting to debtor's claimed exemption in her anticipated earned income tax credit. The trustee also raised an oral objection to confirmation of debtor's plan on the grounds that by excluding future earned income tax credits, debtor was not committing all projected disposable income to her plan.

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Consumer opinion summary, case decided on November 07, 2008 , LexisNexis #0109-062

In re Brown

Ruling
Above median debtor could not propose plan with shorter term than required that did not pay unsecured creditors in full.
Procedural posture

Debtors sought confirmation of their chapter 13 plan, but the trustee objected to the proposed 42 month plan that would not pay all unsecured creditors in full as being contrary to requirements of 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on October 10, 2008 , LexisNexis #0109-026

In re Baughman

Ruling
Debtor could not claim ownership deduction on vehicle owned free and clear.
Procedural posture

The trustee and a creditor each filed objections to the debtors' plan as proposed for confirmation. The debtors took ownership deduction claimed on Official Bankr. Form B22C (the "means test") under IRS local standards for ownership expenses on two vehicles, one of which had less value than its loan, and the second of which was owned free and clear. Therefore, they argued that the plan must not be confirmed.

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Consumer opinion summary, case decided on September 30, 2008 , LexisNexis #1208-129

In re Barbee

Ruling
Debtor allowed by plan to retain portion of monthly disposable income could not retain economic stimulus refund.
Procedural posture

In a core proceeding under 28 U.S.C.S. § 157(b)(2)(L), the debtor in a chapter 13 bankruptcy asked to retain her economic stimulus refund check. The trustee objected.

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Consumer opinion summary, case decided on September 18, 2008 , LexisNexis #1108-054

In re Hedge

Ruling
Veterans association disability payments qualified as "current monthly income."
Procedural posture

Creditor filed an objection to confirmation of the debtors' proposed chapter 13 plan. The issues were: (1) whether Department of Veterans Affairs (VA) disability payments were included in disposable income; (2) whether the debtors take the transportation/ownership expense deduction for a second vehicle which was owned free and clear of liens; and (3) the proper calculation of "projected disposable income" purposes of 11 U.S.C.S. §1325(b)(1)(B).

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Consumer opinion summary, case decided on September 17, 2008 , LexisNexis #1208-027