Keywords: special circumstances . means test . Chapter 13 plan . Projected disposable income .
"When the basis for an attack on an individual's status as a Chapter 7 debtor is the ability to pay unsecured creditors in a hypothetical Chapter 13 case, it only makes sense that the analysis involve a realistic estimation of what the debtor would be required to pay in such a case under current law."
"[I]f the Bankruptcy Code excludes certain retirement funds and loan repayments from a Chapter 13 debtor's 'disposable income', thereby protecting those funds from payment to unsecured creditors, the court can see no logical basis for including those funds in 'disposable income' when conducting a hypothetical Chapter 12 analysis unde Section 707(b)(3)."
Means Test > Special Circumstances > Special Circumstances: Can't fund a Chapter 13 makes Chapter 7 OK?4 Cases , IssueID 53 |
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Ch 7 Means Test |
Ch 13 Means Test |
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Topic Description:"because Congress has simultaneously directed that ERISA contributions and loan repayments be deductible from CMI in Chapter 13 cases, on the facts presented, such a conversion would yield no distribution to unsecured creditors ... the difference in treatment causes an absurdity that is directly contrary to the congressional intent, that while debtors with an ability to repay creditors should file under Chapter 13, debtors lacking that ability are to be permitted Chapter 7 relief." Lines of Cases:
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No Ninth Circuit cases in database on this topic
court allowed a debtor whose monthly disposable income created the presumption of abuse under the means test to remain in chapter 7 since the creditors would not receive any distribution under a chapter 13 plan.
debtor's ability to pay creditors in a hypothetical 13 relevant to 707(b)(3) totality of the circumstances analysis. debtors 401(k) loans would allow for 0 payment to unsecured creditors.
court allowed a debtor whose monthly disposable income created the presumption of abuse under the means test to remain in chapter 7 since the creditors would not receive any distribution under a chapter 13 plan.
debtor's ability to pay creditors in a hypothetical 13 relevant to 707(b)(3) totality of the circumstances analysis. debtors 401(k) loans would allow for 0 payment to unsecured creditors.
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