OpinionsFor purposes of Form B22C, above-median debtors may deduct expenses for both their "basic home telephone service" (Line 25A) as well as cell phones and other telecommunications expenses (Line 37), as long as these other expenses are necessary for the health and welfare of the debtor or for the production of income. With respect to the Line 30 deduction for taxes, an above-median debtor may simply deduct the amount withheld from the debtor's paycheck as long as the debtor dedicates 50% of any tax refunds to the plan. If the debtor chooses not to dedicate 50% of the tax refunds, the correct Line 30 tax deduction will be presumed to be the amount actually paid in taxes as evidenced by the most recent tax return filed. The debtor may rebut this presumption by showing that the taxes paid in the most recent year would constitute an inaccurate deduction due to a change in circumstances; the trustee will then have the opportunity to challenge the accuracy or reasonableness of the debtor's calculations. In re Cline, No. 06-25495-svk (March 2007) -- Judge S.V. Kelley In Chapter 7 Cases, the U.S. Trustee must file his statement of presumed abuse under § 704(b) within 10 days of the first date set for the meeting of creditors rather than the conclusion of the meeting of creditors. Although Bankruptcy Rule 9006 does not permit extension of this deadline, the Court may use its power under § 105(a) to extend the deadline if it appears that the debtor is attempting to abuse the bankruptcy process. In re Richard S. Radbil, Case No. 04-25643, Virginia E. George, Trustee v. Argent Mortgage Co., et al., Adv. No. 05-2311 Published: In re Radbil, 364 B.R. 355 (February 2007) -- Judge M.D. McGarity Chapter 7 trustee filed an adversary proceeding to avoid a mortgage lien. The court denied the trustee's motion for partial summary judgment; issue of fact remained regarding whether or not perfection of secured interest was substantially contemporaneous with execution of mortgage. In re Snezana & Boban Ljubic, Case No. 03-32636, Virginia E. George, Trustee v. Guaranty Mortgage Co., Adv. No. 04-2213 Published: In re Ljubic, 362 B.R. 914 (February 2007) -- Judge M.D. McGarity Chapter 7 trustee brought an adversary proceeding to avoid a mortgage lien. The court denied the trustee's motion for summary judgment; because no bona fide purchaser could have acquired a lien superior to the secured creditor, the perfection of the mortgage was not a preferential transfer. In Re Sawdy 06-25130 (February 2007) -- Judge P. Pepper Chapter 13 debtors are entitled to deduct the IRS Local Standard expense for vehicle ownership from their Form B22C even if they own their vehicles outright and do not actually make note or lease payments each month. In re Gilbertson, 340 B.R. 618, vacated by 2007 WL 433096 (February 2007) -- Judge S.V. Kelley Compensation for professionals retained under § 328 cannot be reviewed for reasonableness. In Re Scofield, 07-22127 (January 2007) -- Judge P. Pepper Debtors who convert from a case under Chapter 13 to a case under Chapter 7 are required to file a Form B22A upon conversion. In re Matthew J. Blair, Case No. 05-41949, Dustin Elbing v. Debtor, Adv. No. 06-2135 Published: In re Blair, 359 B.R. 233 (January 2007) -- Judge M.D. McGarity Player who was injured during prepetition hockey game when he was punched by the chapter 7 debtor in head, face, and nose brought an adversary proceeding for a determination that potential obligations owed him by the debtor were excepted from the discharge. The court granted the player's motion for summary judgment. The debtor's no contest plea to charges of misdemeanor battery and disorderly conduct did not have an issue preclusive effect under Wisconsin law. Nevertheless, the state court's findings in a separate personal injury action about the intentional nature of the debtor's conduct, along with the debtor's statements to his insurer established the willful and malicious nature of the debtor's actions. In re Douglas C. Wilke, Case No. 06-26904 (January 2007) -- Judge M.D. McGarity Because hearing was not held within 30 days of petition date, automatic stay was not extended in debtor's second bankruptcy case. (This decision is a court minute decision, only.) In re Darrin J. Schultz, Case No. 06-24781 Published: In re Schultz, 363 B.R. 902 (January 2007) -- Judge M.D. McGarity Chapter 13 trustee filed an objection to confirmation of the debtor's plan, arguing it did not comply with the equal payment requirement of sec. 1325(a)(5)((B)(iii)(I). The plan provided for monthly payments at the rate due under the mortgage with a balloon payment at the end of the 60-month term. The court overruled the objection because the secured creditor accepted the plan. |