In Re Scott

457 B.R. 740 (2011)

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Nature of the Case

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Facts

Each of the debtors (Ps) filed for relief under Chapter 13. They completed the requisite Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income (Form B22C/means test). The B22C is a standardized form that is used to determine the amount of disposable income that a debtor is able to pay to unsecured creditors. Each P reported income that is above the applicable median income for their respective household size. Ps were required to calculate their disposable income pursuant to 11 U.S.C. § 1325(b)(3). Ps were directed by the form to take the Internal Revenue Service standardized deductions for certain expenses. At Lines 28a and 29a Ps claimed standardized 'transportation ownership/lease expense[s]' of $496 for each of two cars, despite the fact that their actual ownership expenses are less than this amount. Ps then deducted the amounts of their actual monthly car payments on lines 28b and 29b to arrive at their net car ownership expenses. Ps continued to B22C line 47, which is where above-median income debtors are asked to list their future payments on secured claims or 'debt payments.' Ps listed their average monthly loan payments for their two cars. Thus Ps were able to receive the full value of the I.R.S. Standard. D objected claiming a transportation expense in excess of what they owe was in violation of 11 U.S.C. § 1325(b). D claims Ps should be allowed to deduct only their actual monthly payment since it is less than the I.R.S. Standard.