Contributions to an employee retirement plan are to be excluded from the calculation of current monthly income rather than deducted from disposable income in the Means Test. In re Vu, No. 15-41405 (Bankr. W.D. Wash. June 16, 2015). [Read more…] about Contributions to Retirement Plan Excluded from CMI
Student Loan May Be “Special Circumstance” under Section 707(b)(2)(B)(i)
In a fact-specific analysis, the court in In re Bradley found that the debtors’ nondischargeable student loan debt constituted a “special circumstance” that could be used to adjust current monthly income to rebut the presumption of abuse otherwise created by the means test calculation under section 707(b). 2013 WL 4663125 (Bankr. S.D. Ala. Aug. 30, 2013). [Read more…] about Student Loan May Be “Special Circumstance” under Section 707(b)(2)(B)(i)
Ninth Circuit en Banc Decision Overrules Kagenveama
In a blow to debtors, the Ninth Circuit, in an en banc decision, has reversed its position with respect to the applicable commitment period when the debtor has less than or equal to zero disposable income. Danielson v. Flores (In re Flores), No. 11-55452 (9th Cir. Aug. 29, 2013). [Read more…] about Ninth Circuit en Banc Decision Overrules Kagenveama
Social Security Income May Not Be Considered in Good Faith Analysis
The Ninth Circuit today held that “Congress’s adoption of the BAPCPA forecloses a court’s consideration of a debtor’s Social Security income or a debtor’s payments to secured creditors as part of the inquiry into good faith under 11 U.S.C. § 1325(a).” Drummond v. Welsh (In re Welsh), No. 12-60009 (9th Cir. March 25, 2013), aff’g Drummond v. Welsh (In re Welsh), 465 B.R. 843 (B.A.P. 9th Cir. 2012).
[Read more…] about Social Security Income May Not Be Considered in Good Faith Analysis
NCBRC Files Amicus in Vehicle Ownership Expense Case
NCBRC has filed an amicus brief in In re Scott, No. 10-33131 (Bankr. S.D. Ill), involving the calculation of projected disposable income for vehicle ownership expense where the debtor’s actual contractual payments were less than the deduction allowed under the IRS Local Standards. NCBRC’s brief relies on the plain language of section 707(b)(2)(A)(ii)(I) for the position that a chapter 13 plan need not calculate pdi based upon the lesser of the IRS allowed deduction or the debtor’s actual payments. This position is further supported by the statute’s legislative history and is not undermined by the decision in Ransom nor is it contrary to bankruptcy policy. NCBRC’s brief was written by Jim Haller. Click here for the brief.