Related Keywords: Best interest of creditors test . Chapter 13 plan . Chapter 13 Plan Modification .
U.S. Supreme court finally resolves this question choosing to follow the line of cases started by In re Nowlin (type C) in this outline.
Held: When a bankruptcy court calculates a debtor's projected disposable income, the court may account for changes in the debtor's income or expenses that are known or virtually certain at the time of confirmation.
Throughout its discussion the court seemed to agree with the "Type C" cases listed here that use form 22C as the standard for what expenses are and are not allowed, but these amounts can be adjusted if changes in the debtor's income or expenses "are known or virtually certain at the time of confirmation." Note that's a pretty high bar.
Note also that the court says you should keep the formula from Form 22C but adjust it based on facts. It does not say to throw out 22C and rely on Schedules I and J.