§ 1325(b)

In re Nodora

A chapter 13 trustee objected to the confirmation of the plan of an above- median income debtor. The debtor proposed to pay a student loan claim directly and to deduct that payment in calculating disposable income under 11 U.S.C. § 1325(b)(3).
Ruling: 
Deduction of direct student loan payment from calculation of disposable income did not impact distribution to unsecured creditors and was allowed.
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Consumer case opionion summary, case decided on July 17,2007, LexisNexis #1007-057

In re Nance

In each of the debtors'cases, the chapter 13 trustee objected to confirmation on the grounds that the proposed plan failed to use the proper methodology to calculate "projected disposable income" and/or failed to provide for payment of all of debtors'disposable income for a period of five years.
Ruling: 
Above-median debtor required to propose five-year plan unless unsecured creditors were paid in full.
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In re Arnold

Chapter 13 trustee objected to the debtors'three-year, zero percent plan.
Ruling: 
Form 22C, allowing deduction of business expenses in determining "cuurent income" is erroneous.
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Commercial case opionion summary, case decided on July 03,2007, LexisNexis #1107-092

In re Arsenault

Chapter 13 trustee objected to confirmation of the above-median-income debtors'plan on the grounds that it did not commit all of the debtors'projected disposable income to be received in the applicable commitment period to be paid to unsecured creditors over the term of the plan, as required under 11 U.S.C. § 1325(b)(1)(B).
Ruling: 
Objection to confirmation sustained where debtors failed to include annual bonuses not received in the six months prior to filing on Form B22C.
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In re Meek

The chapter 13 trustee filed objections to confirmation of the above median income debtors'proposed plan, raising issues of debtors'failure to either pay unsecured creditors in full or to pay their "projected disposable income," under 11 U.S.C. § 1325(b)(1)(B), given the discrepancy between the calculations of net monthly amounts shown on Form 22C and on Schedules I and J.
Ruling: 
Confirmation denied due to excess housing expense claimed by above-median debtors.
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In re Berger

Creditor, the holder of claims exceeding $21,000 in unsecured debt, filed an objection to the confirmation of debtors' chapter 13 plan, asserting that the plan failed to propose payment of all debtors' disposable income to unsecured creditors. Debtors argued that their plan complied with the preferred interpretation of projected disposable income as calculated under 11 U.S.C. § 1325(b).
Ruling: 
Projected disposable income is properly determined by disposable income calculation on Form B22C.
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In re McGillis

Debtors moved to confirm their chapter 13 plan over the chapter 13 trustee's objection. The chapter 13 trustee objected because the debtors allegedly were not committing to their unsecured creditors all of their disposable income as required by 11 U.S.C. § 1325(b). The chapter 13 trustee also asserts that the debtors'plan was not proposed in good faith.
Ruling: 
Confirmation denied due to improper calculation of disposable income.
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In re Frederickson

Debtor's chapter 13 plan, proposed for a 48-month period, asserted that, according to Form 22C, the debtor was not required to make any payments to his unsecured creditors under the plan, for lack of any disposable income under 11 U.S.C. § 1325(b)(3). The trustee in bankruptcy objected, arguing that the plan must provide for payments over a 60-month period under 11 U.S.C. § 1325(b)(4)(B).
Ruling: 
Forty-eight-month plan approved for above-median debtor who had no disposable income and was not required to make payments to unsecured creditors.
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In re Lanning

The chapter 13 trustee objected to confirmation of the plans in two bankruptcy cases on the basis that the plans failed to provide that all of the above-median income debtors' projected disposable income to be received in the applicable commitment period would be applied to make payments to unsecured creditors under the plan as required by 11 U.S.C. § 1325.
Ruling: 
Debtors bound by calculation of projected disposable income on Form B22C absent showing of substantial change in circumstances.
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In re Pohl

The chapter 13 trustee objected to the confirmation of the below-median income debtors'plan on the basis that the plan failed to extend at least 36 months or, alternatively, to pay all unsecured creditors in full, as required under 11 U.S.C. § 1325(b)(4).
Ruling: 
Confirmation of below-median debtors'plan denied due to failure to extend for 36 months.
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