Surrendered Real Estate Deductible in the Means Test in Ohio

05 Oct Surrendered Real Estate Deductible in the Means Test in Ohio

JUDGE LARRY WALTERS  becomes the latest Ohio bankruptcy judge to agree that as long as you are contractually due on house you can deduct the monthly payments from the MEANS TEST even if you are surrendering the house. IN RE JANICE PHILLIPS

This is important as the more Judges sign on to this concept the less likely the US Trustee will attempt to fight it.  In our jurisdiction the US Trustees have been waiting for the right case to see if they could get a different opinion out of Judge Walter.

Now all the Judges are on the same page in Southern Ohio on this issue.  Caveat the Judge did note in a footnote that his decision might be different if a foreclosure judgment had been entered, as the debtor was no longer contractually due.   I think that is wrong but we will have to wait and see how the Judges rule in the future

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