In re Marindee Kay Hardacre (Commentary from Glenn Stearns)

From Glenn Stearns, Chapter 13 Trustee Highlights of In re Marindee Kay Hardacre, 05-95518-DML-13, Bankruptcy Court, ND Texas, Fort Worth Division (PDF available from Glenn Stearns' office):

• No “Double Dipping” on mortgage and car loan expenses. We expected that.
• “Projected disposable income” is anticipated income during the term of the plan. We expected that.
• Debtor can’t deduct ownership costs on a car not subject to a secured claim.

The judge must have read the IRS’s Collection Financial Standards, part of which is shown below: Transportation The transportation standards consist of nationwide figures for monthly loan or lease payments referred to as ownership costs, and additional amounts for monthly operating costs broken down by Census Region and Metropolitan Statistical Area (MSA). Public transportation is included under operating costs. A conversion chart has been provided with the standards which shows which IRS districts fall under each Census Region, as well as the counties included in each MSA. The ownership cost portion of the transportation standard, although it applies nationwide, is still considered part of the Local Standards. The ownership costs provide maximum allowances for the lease or purchase of up to two automobiles if allowed as a necessary expense. The operating costs are derived from BLS data. If a taxpayer has a car payment, the allowable ownership cost added to the allowable operating cost equals the allowable transportation expense. If a taxpayer has no car payment, or no car, only the operating costs portion of the transportation standard is used to come up with the allowable transportation expense. Glenn Stearns Chapter 13 Trustee 4343 Commerce Court, Suite 120 Lisle, IL 60532 630-577-1313 ext 222 http://www.lisle13.com