A continuing issue in consumer bankruptcy cases in Chapter 7, 11 and 13, is the manner in which automobile expenses are treated in the calculation of “current monthly income”. As with many aspects of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”), practitioners and Courts have struggled with the question of determining the treatment of automobile expenses under the Code. On June 10, 2009, the Fifth Circuit Court of Appeals ruled that a Chapter 7 Debtor could claim the deduction and expense for transportation even if the Debtor used vehicles which were not subject to loans or leases.
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June 24th, 2009
June 8th, 2009
The Bankruptcy Code requires that a Bankruptcy Petition, whether it be a Chapter 7 or Chapter 13 Bankruptcy, include a complete list of all debts owed at the time of the filing of the Bankruptcy Petition. In addition to the requirements of the Code, it is very important that a Petition contain a complete list to provide notice and best protect the Debtor from future collection efforts and to avoid future costs and time associated with addressing the claims of creditors who allege failure of service. A recent Chapter 13 bankruptcy case from Indiana shows why the failure to list a creditor may affect a case.
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May 14th, 2009
A recent Pennsylvania Bankruptcy Court decision clarified some of the important issues in Chapter 13 bankruptcy cases where a debtor seeks to modify the mortgage on their residence and there is additional collateral taken in other assets.
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