§ 1325(b)

In re Scott

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).
Ruling: 
Social security benefits were not properly included in projected disposable income calculation.
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Consumer case opionion summary, case decided on January 11,2013, LexisNexis #0213-026

In re Ballew

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.
Ruling: 
Applicable commitment period only applied to debtors making payments based on positive projected disposable income.
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Consumer case opionion summary, case decided on January 11,2013, LexisNexis #0213-027

In re Toxvard

Before the court was the confirmation of chapter 13 debtor's second amended chapter 13 plan and the objection to confirmation filed by the chapter 13 trustee.
Ruling: 
Confirmation denied due to failure to provide income information for nondebtor spouse.
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Consumer case opionion summary, case decided on January 09,2013, LexisNexis #0113-130

In re Drapeau

Before the court was an objection by the chapter 13 trustee to confirmation of debtors' chapter 13 plan.
Ruling: 
Objection to confirmation based on debtor's failure to include retirement contribution in projected disposable income overruled.
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Consumer case opionion summary, case decided on January 08,2013, LexisNexis #0113-131

Meyer v. United States Trustee (In re Scholz)

Trustee objected to chapter 13 debtors' calculation of their current monthly income under 11 U.S.C.S. 101(10A). The bankruptcy court overruled the trustee's objection. The Bankruptcy Appellate Panel of the Ninth Circuit (BAP) found that a Railroad Retirement Act of 1974 (RRA) annuity was current monthly income but not projected disposable income under 11 U.S.C.S. § 1325(b). The trustee appealed.
Ruling: 
Railroad Retirement Act annuity should not have been excluded from projected disposable income calculation.
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Consumer case opionion summary, case decided on November 15,2012, LexisNexis #1212-030

In re Grabarczyk

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).
Ruling: 
Confirmation denied due to debtors' failure to devote all projected disposable income to plan.
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Consumer case opionion summary, case decided on November 06,2012, LexisNexis #1112-135

In re Hersh

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).
Ruling: 
Confirmation denied due to failure to apply all projected disposable income to payment of unsecured creditors.
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Consumer case opionion summary, case decided on November 02,2012, LexisNexis #1212-031

In re Hight-Goodspeed

This matter was before the court with regard to confirmation of debtor's proposed chapter 13 plan. The trustee objected to confirmation claiming that the plan did not satisfy the requirements of 11 U.S.C.S. § 1325(b)(1). The issues raised by that objection were submitted for a decision on stipulations of fact and the briefs of counsel.
Ruling: 
Confirmation denied due to failure to devote all disposable income to plan or pay unsecured claims in full with interest.
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Consumer case opionion summary, case decided on October 31,2012, LexisNexis #0413-066

Beaulieu v. Ragos (In re Ragos)

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.
Ruling: 
Social Security income was properly excluded from projected disposable income calculation.
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Consumer case opionion summary, case decided on October 29,2012, LexisNexis #1112-101

Anderson v. Cranmer (In re Cranmer)

Debtor filed a chapter 13 bankruptcy repayment plan which excluded Social Security income (SSI) from the projected disposable income calculation. Appellant bankruptcy trustee objected, and the bankruptcy court denied confirmation of the plan. Debtor appealed, and the U.S. District Court for the District of Utah reversed. The trustee appealed.
Ruling: 
Receipt of Social Security income was not a change in income and was properly excluded from projected disposable income.
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Consumer case opionion summary, case decided on October 24,2012, LexisNexis #1112-065

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