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Keywords: IRS standards . mortgages . rent . means test .

Topic #11:: Local Standards: Housing and Utilities AND Mortgage/Rent Expense

  • Topic Overview
  • 5 Cases on This Topic
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Means Test > Expenses > IRS Allowances > Housing, Utilities, Mortgage/ Rent

Local Standards: Housing and Utilities AND Mortgage/Rent Expense

5 Cases , IssueID 11

Ch 7 Means Test
Form 22A, Line 20B
Ch 13 Means Test
Form 22C Line 25B

Topic Description:

Whether debtors are entitled to the full household expense allowance even if their actual expenses are less.

Lines of Cases:

A:

Debtor entitled to whole IRS allowance for housing, even if the actual expense is less

B::

Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less

C:

What "non-mortgage expenses" include

Topic Background / Overview:

From In re Hardacre:
Explaining why you get the full amount of the allowance even if your actual expenses are less

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The effect of section 707(b)(2)(A)(ii)(I) is to permit the debtor to deduct the greater of her actual mortgage and car ownership payments or the amounts provided in the Local Standards. This is because the "notwithstanding" sentence cannot be read to require the court to reduce the allowance under the applicable Local Standard to a number that is less than zero, which the court would have to do in order for the debtor's deduction to be limited to the lesser of the amounts permitted under the Local Standards or the debtor's average monthly secured debt payments.[5] While the "shall not include" language in that sentence can be viewed as an instruction to reduce the applicable Local Standards to zero after deducting the average monthly mortgage and car ownership payments, it cannot be read to create a net negative allowance for those items under the Local Standards.

....



When section 707(b)(2)(A)(ii)(I) is construed in accordance with the foregoing analysis, section 707(b)(2)(A)(i) is placed in its proper context. Although the debtor is correct when she asserts that clause (i) requires the court to deduct all categories of expenses under clauses (ii), (iii) and (iv), her argument is vitiated by the requirement in clause (ii)(I) that the debtor reduce her allowances under the Local Standards by average monthly payments on secured debts related to mortgage and car ownership expenses.

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  • Type A = Debtor entitled to whole IRS allowance for housing, even if the actual expense is less
  • Type B = Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less
  • Type C = What "non-mortgage expenses" include
  • Type E = "Everything Else"
  • Cases for Zip
  • All Cases By Date
  • Cases A - Z

Cases for Zip , California Northern District Bankruptcy Court

Ninth Circuit Cases

� In re Broers

Bankr.E.D.Wash. - 2007 WL 4166144 - 2007-12-14 - 13 , Above

Google ID#:
(Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less )

� In re Rezentes

Bankr.D.Hawaii - 368 B.R. 55 - 2007-04-02 - 13 , Above

Google ID#: 13723166781579119728
(Type B : Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less )

Other Circuits

� In re Musselman (Musselman v. eCast Settlement Corp.)

E.D.N.C. - 394 B.R. 801 - 2008-09-30 - 13 , Above

Google ID#: 3682934620630315002
(Type B : Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less )

Debtor entitled to IRS allowance for housing, even if the actual expense is less

� In re Briscoe

Bankr.D.D.C. - 374 B.R. 1 - 2007-09-04 - 13 , Above

Google ID#: 2342652270756947784
(Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less )

� In re Farrer-Johnson

Bankr. N.D. Ill. - 353 B.R. 224 - 2006-09-15 - 13 ,

Google ID#: 17694754915058519033
(Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less )

Debtor in rent free military housing was allowed to take full IRS allowance.

� In re Musselman (Musselman v. eCast Settlement Corp.)

E.D.N.C. - 394 B.R. 801 - 2008-09-30 - 13 , Above

Google ID#: 3682934620630315002
(Type B : Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less )

Debtor entitled to IRS allowance for housing, even if the actual expense is less

� In re Broers

Bankr.E.D.Wash. - 2007 WL 4166144 - 2007-12-14 - 13 , Above

Google ID#:
(Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less )

� In re Briscoe

Bankr.D.D.C. - 374 B.R. 1 - 2007-09-04 - 13 , Above

Google ID#: 2342652270756947784
(Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less )

� In re Rezentes

Bankr.D.Hawaii - 368 B.R. 55 - 2007-04-02 - 13 , Above

Google ID#: 13723166781579119728
(Type B : Debtor NOT entitled to whole IRS housing expense allowance if actual expense is less )

� In re Farrer-Johnson

Bankr. N.D. Ill. - 353 B.R. 224 - 2006-09-15 - 13 ,

Google ID#: 17694754915058519033
(Type A : Debtor entitled to whole IRS allowance for housing, even if the actual expense is less )

Debtor in rent free military housing was allowed to take full IRS allowance.

All Cases A to Z


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