Case Summary:
The debtors proposed a chapter 13 plan which calculated their “disposable income” in accordance with their Form B22C. The chapter 13 trustee objected on the grounds that the income reported on the Form B22C was abnormally low because the debtor had been disabled during the six months prior to the bankruptcy filing. The trustee argued that the debtors’ actual income should be used in determining their “disposable income.” The court found that the Form B22C should be the starting point for the disposable income test but is not dispositive. If the six-month average used by the Form B22C to calculate a debtor’s “current monthly income” is not a reasonable forecast of future income, the court may consider the debtors’ actual income.
Statute/Rule References:
11 U.S.C. § 1325 -- Confirmation of Chapter 13 Plan
Key Terms:
Confirmation of Chapter 13 Plan
Disposable Income
Means Test
Projected Disposable Income