Case Summary:
The Chapter 13 Trustee objected to the above-median income debtors’ 60-month plan.  The plan proposed monthly payments of $750.  Application of the means test resulted in negative disposable income, but Schedules I & J disclosed disposable income of $1,563.98.  The Chapter 13 Trustee contended that the Debtors should be required to commit all of the disposable income identified on Schedules I & J to a plan of less than 60 months, resulting in a 100% dividend to unsecured creditors.  The Court overruled the objection, holding that § 1325(b)(4) does not permit the Court to approve a plan of less than 60 months for an above-median income debtor.  The Court also rejected the Chapter 13 Trustee’s argument that the confirmed plan should be modified under § 1329 immediately following plan confirmation.  The Court noted that § 1329 permitted modification, but that under the specific facts of the case, modification was not warranted.  Specifically, the Court cited a total lack of any changed circumstances following confirmation and the lack of good faith inherent in attempting to circumvent the requirements of In re Mancl, 381 B.R. 537, 541 (W.D. Wis. 2008).

Statute/Rule References:
11 U.S.C. § 1325 -- Confirmation of Chapter 13 Plan
11 U.S.C. § 1325(b)
11 U.S.C. § 1329(a) -- Modification of Plan After Confirmation
11 U.S.C. § 1329(b)

Key Terms:
Above-Median Income Debtor
Applicable Commitment Period
Changed Circumstances
Good Faith
Modification
Projected Disposable Income