Wednesday, April 20, 2011

Debtor's may only claim standard expense allowances in Ch. 13

In re Thiel
United States Bankruptcy Court District of Idaho
Chief Judge Terry L. Myers
Decision Date: 3/1/2011
Ch. 13

Debtors have a montly disposable income of $1,102.70 and proposed a chapter 13 plan that does not pay their unsecured creditor's in full. Trustee objects per 1325(b)(1)(B) requiring projected disposable income to be paid to unsecured creditors.

The Court reviewed Lanning and Ransom. Debtors attempted to carry thier burden of proving the Plan confirmable by pointing to schedules I and J and arguing that they are proposing to pay thier "truley projected disposable income as shown. The court found that this does not meet the requirements of the code. Trustee's objection was sustained.

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