anonymuse
06-14-2006, 08:06 PM
June 14 2006
HELD: THE "APPLICABLE COMMITMENT PERIOD" IS THE LENGTH OF THE PLAN; CHAPTER 13 EXPENSES CANNOT INCLUDE OWNERSHIP COST IF CAR IS OWNED OUTRIGHT
The bankruptcy court in In re McGuire __ B.R. __ (Bkrtcy.W.D.MI 2006) held that a chapter 13 plan had to be 60 months where the debtor's income exceeded the state median; the 60-month phrase in section 1325(b) was not merely a multiplier but also determined the length of the plan (contradicting the position of NACBA that the figure is merely an arithmetical multiplier not related to the length of the plan.
The opinion also held that where the debtor did not owe anything on his motor vehicle he could not claim as an expense the "ownership" expense described in the I.R.S. Manual, but if the car was over 6 years old or more than 75,000 miles he could add $200 to the operating cost expense item
http://www.bankruptcymedia.com/
HELD: THE "APPLICABLE COMMITMENT PERIOD" IS THE LENGTH OF THE PLAN; CHAPTER 13 EXPENSES CANNOT INCLUDE OWNERSHIP COST IF CAR IS OWNED OUTRIGHT
The bankruptcy court in In re McGuire __ B.R. __ (Bkrtcy.W.D.MI 2006) held that a chapter 13 plan had to be 60 months where the debtor's income exceeded the state median; the 60-month phrase in section 1325(b) was not merely a multiplier but also determined the length of the plan (contradicting the position of NACBA that the figure is merely an arithmetical multiplier not related to the length of the plan.
The opinion also held that where the debtor did not owe anything on his motor vehicle he could not claim as an expense the "ownership" expense described in the I.R.S. Manual, but if the car was over 6 years old or more than 75,000 miles he could add $200 to the operating cost expense item
http://www.bankruptcymedia.com/