Projected Disposable Income is the Same as Disposable Income
(Form B22C Controls)
In re Farrar-Johnson, WL 2662709 (Bankr. N. D. Ill. 9/15/06.)
Under Chapter 13 where a debtor is above the median income, section 1325(b)(3) makes clear that Schedule J has no role in calculating disposable income when determining what the monthly plan payment will be. Line 58 multiplied by 60 will give you the amount needed to be paid to the unsecured creditors when calculating the plan.
Another, possibly bigger blow to debtors is found in the decision In re Wiggs, 2006 WL 2246432 (Bankr. N. D. Ill. 8/04/06).
If a debtor who does not make a vehicle note or lease payment cannot take the ownership/lease deduction on Lines 28-29 of Form B22C.
Finding §707(b)(2)(A)(ii)(I) “clear and unambiguous,” the court stated that the word “applicable” “modifies the amounts specified to limit the expenses to only those that apply” (Citing In re McGuire, 342 B. R. 608 (Bankr. W. D. Mo. 2006)). The court also reasoned that the court should look to the statute rather than the IRS guidelines.
Obviously, you should speak to an attorney to help you with these issues.
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