In re Royal: Defining Projected Disposable Income Post-BAPCPA

Keisha Hooks, staff attorney for Chapter 13 Trustee, Marilyn O. Marshall (N.D. Ill.), provides an analysis of a bankruptcy court decision addressing the complicated question of “projected disposable income”.

The enactment of BAPCPA has forced bankruptcy courts to answer a legitimate, yet previously overlooked question-are the terms “disposable income” and “projected disposable income” synonymous? Pre-BAPCPA, I suspect that most practitioners never distinguished between the two terms, and in fact, used them interchangeably. As of late, however, the distinction is made regularly in bankruptcy courts across the nation. The conundrum exists because “projected disposable income”, the amount . . .

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