Bankruptcy by Keyword:
"Expenses"
Related Keywords: $200 clunker allowance . income . IRS standards .
Case Law Topics
Expenses: 401(k) loan repayment allowed in Chapter 13 but not in Chapter 7: b/c not a "mandatory payroll deduction" or "special circumstance" or " debt"
Chapter 7 Means test form is generally held not to allow deduction of 401(k) loans repayments anywhere on the form.
In a long line of cases, various debtors have tried various arguments, classifying the payments as as "secured debts" or as "necessary expenses"
In most cases, those attempts are rejected.
However, the fact that such expenses are deductible in Chapter 13, it is quite possible to have a scenario where forcing the debtor into Chapter 13 would result in no net benefit to unsecured creditors. In such cases, some judges have found it to be relevant among other special circumstances to override the presumption of abuse created by the Chapter 7 Means Test calculation on Form 22A.
Expenses: "Other Necessary Expenses"
Part __ of the means test forms allows for various kinds of "Other Necessary Expenses" within specifically defined categories. These classifications are based on the IRS collection standards.
Case law in this area discusses various fact situations to determine whether they meet the criteria of an "Other necessary expense"Expenses: Deduction for educational expenses of family member
Expenses: Support for care of family members
the means test allows for expenses for care of family members, whether or not they are living with you.
Expenses: What constitutes a "luxury" vs. a "reasonable and necessary" expense?
Given the case by case nature of these decisions, it's hard to discern a pattern. But here is a collection.
