Click Here To Receive FREE Email Updates!

Current ArticleMain Content RSS FeedSubscribe

Can I, Can I Not, Take the Means Test Car Ownership Allowance When My Car Is Paid For?

Kansas has four conflict decisions among the many decisions written on the propriety of taking the car ownership allowance on the means test if your car is paid for and has no lien upon it.  Last week, one Kansas judge reversed herself to follow a BAP opinion.

The Bankruptcy Appellate Panel for the U.S. Circuit Court of Appeals for the 10th Circuit (BAP) ruled last month in Pearson you may take the allowance, the Kansas District Court ruled you may not take the allowance in the Wieland vs. Thomas case, reversing the Kansas City, KS, bankruptcy court. The chief bankruptcy judge in Wichita ruled against taking the allowance in the Howell case as did the Topeka bankruptcy judge in the Law case.  Judge Janice Miller Karlin announced last week she no longer following her Law decision and she will be following the BAP’s Pearson decision.

None of these decisions is binding on other judges in other cases. The Pearson case has been  appealed to the U.S. Court of Appeals. Perhaps, soon, we will have a binding answer for the 10th Circuit states (Kansas, Oklahoma, Colorado, New Mexico, Utah and Wyoming).

IN FAVOR OF ALLOWANCE
In Re Pearson, (BAP10, WY-07-097, July 28, 2008)

NOT IN FAVOR OF ALLOWANCE
Wieland v. Thomas, 382 B.R. 793 (D. Kan. March 4, 2008)(Lungstrum, J.), reversing In re Thomas, 2007 WL     2903201 (Bankr. D. Kan. Oct. 02, 2007)(Berger, J.)
In re Howell, 366 B.R. 153 (Bankr. D. Kan. 2007)(Nugent, J.)
In re Law, 2008 WL 1867971 (Bankr. D. Kan. 2008)(Karlin, J.) (holding no longer followed by author)

If you liked that post, then try these...

Foreclosure Assistance for Coloradoans by Bankruptcy Attorney

How Can I Stop Making Bad Financial Decisions With My Money? by Bankruptcy Attorney

Should I Give Away My House or Other Property Before Bankruptcy? by Bankruptcy Attorney

Get In Touch With A Lawyer Near You

Why are you considering bankruptcy?

Garnishment
Creditor Harassment
Repossession
Foreclosure
Lawsuits
Illness/Disability
Divorce
Other:

What kind of bill problems do you have?

Credit Cards / Store Cards
Personal Loans
Child Support
Student Loans
Car Loans
Income Taxes
Payday Loans
Medical/Dental/Hospital Bills
Past Due Mortgage Bills
Other:

Submitting this form does not create an attorney-client relationship with any lawyer, nor does it constitute an agreement by any lawyer to perform any service – including consult with you in any way. Some lawyers may charge a fee for a consultation concerning your situation. We will never sell your personal information.

Trackback URL

Sorry, comments for this entry are closed at this time.