In re Scott (12-51625)

The Chapter 13 trustee objected to confirmation of the above-median-income debtor’s plan on the grounds that the plan did not comply with the “projected disposable income” requirement of 11 U.S.C. § 1325(b)(1)(B).  The trustee argued that the debtor’s non-filing spouse’s social security benefits should be included in the plan payments, which would result in unsecured claims being paid in full.  The court held that the social security benefits of a non-filing spouse are not included in the calculation of the debtor’s projected disposable income.  The court also rejected the trustee’s argument that the plan was not proposed in good faith, 11 U.S.C. § 1325(c)(3), because the debtor was voluntarily agreeing to pay unsecured creditors more than he was required to pay.

Friday, January 11, 2013