disposable income Tag

26 Jun Chapter 13 Bankruptcy Plan Payments Can be Lowered if Your Income Decreases

When a Chapter 13 bankruptcy plan gets confirmed by the Bankruptcy Court, the monthly payments you are supposed to pay to the trustee are set by the confirmation order. But they are not always set in stone. A Chapter 13 bankruptcyPlan can usually be modified if there is a significant and unanticipated change of circumstances, such as an unexpected reduction in income. In many cases your lawyer can make a motion to modify the confirmed plan. If you have less money to pay to the trustee, you can propose to lower the monthly payments. You can also propose tolower the percentage being paid to the unsecured creditors, and toextend the duration of the plan to 60 months, if it not already a 60 month plan. If you are proposing to lower your monthly payments, you will also have to submit a new budget (Schedules I & J). This amended budget must show that your current household income and expenses have decreased your disposable income to the amount you are proposing to pay in your modification. There may be some limitation to how much you can lower your payments to the Trustee.
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28 Sep Means Test and Attorney Fees

I wrote about attorney fees as a means test deduction some time ago.BAPCPA's provision, codifiedat section 707(a)(2)(A)(iv) of the Bankruptcy Code, says that priority claims are deducted from income. Priority claims include a Chapter 13 debtor's counsel's fees. See sections 507(2), 503(b)(2), and 330(a)(4)(B). Therefore,...

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27 Mar Can bad faith or excess income be “cause” to dismiss a non-consumer Chapter 7 case?

As has been often explained, Chapter 7 Debtors with primarily business debt, or otherwise not primarily consumer debt, are not subject to the "means test" adopted in the 2005 bankruptcy reform act.In fact, they are not subject to any of the provisions of the Bankruptcy...

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07 Jun Supreme Court decides Hamilton v Lanning: Projected Disposable Income in Chapter 13 Bankruptcy is not Strictly Mechanical

One of the fundamental requirements to confirm a plan in a Chapter 13 bankruptcy is that (unless creditors are paid in full) the Debtor must pay for the benefit of unsecured creditors his or her "projected disposable income" to be received in an "applicable commitment...

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