In re Luban, No. 11-13633-BKC-AJC

In re Luban, No. 11-13633-BKC-AJC, 2012 WL 694515, at *1–*3 (Bankr. S.D. Fla. Mar. 1, 2012) (Cristol)

$200 additional operating expense in IRM is not allowable because not part of Local Standards transportation operating expenses. “[T]he Bankruptcy Code provides that a debtor’s expenses are to be defined by the standards promulgated by the IRS, not by the IRM; the IRM is neither incorporated into the IRS Local Standards nor the Bankruptcy Code. . . . The additional $200 operating expense that the Debtors seek is an adjustment which is not part of the Local Standards table and not included in the section of the IRM that outlines the Local Standards. . . . In [Ransom v. FIA Card Services, N.A., __ U.S. __, 131 S. Ct. 716, 178 L. Ed. 2d 603 (Jan. 11, 2011)], the Supreme Court expressly stated that the IRS guidelines are not incorporated into the Code. The Supreme Court used the IRM merely as commentary to assist it in interpreting statutory language. . . . The Debtors in this case do not seek to use the IRM to interpret statutory language but rather to create a new deduction that does not exist in the IRS Standards or the Code. . . . Debtors are not entitled to a deduction upon anticipating they may later incur additional expenses. . . . Debtors must actually incur some expense for a deduction to be considered applicable . . . . Debtors do not incur an additional $200 in operating expenses simply by virtue of the age of their cars. . . . [T]he law, as it exists, seems to punish the frugal. Had the Debtors bought and financed newer cars, prior to filing their bankruptcy petition, they probably would have qualified to pay less to their creditors and would not have to worry about the burden of higher maintenance expenses. Unfortunately, the Court must apply the law as it exists and not modify or change the law because of sympathy or the fact that the law might have been more logical.”

No Author Biography has been linked to this Article.

Related Articles

ahern_larry_regular
May 14, 2023
Introduction This series reviews developments in bankruptcy procedure during the past year.One new rule and amendments to 16 rules took effect December 1, 2022.  Many reflected changes necessitated by the Small Business Reorganization Act of 2019 (SBRA), and had been in place in the same or similar form on an interim basis since that legislation took effect.
Members
October 3, 2021
By Henry E. Hildebrand, III, Chapter 13 Standing Trustee (Nashville, TN) Administrative fees and claims existing when Chapter 13 plan was confirmed would reduce the amounts received by unsecured creditors in a Chapter 7 under the “best interests of creditors test;” unsecured creditors, expected to receive payments over three years, must be paid the “present value” of that stream of...
Members
March 29, 2020
BULLETIN SMALL BUSINESS REORGANIZATION ACT POSTSCRIPT CARES Act Passed by Senate Increases Eligibility to Small Business Debtors with Aggregate Debts Up to $7,500,000 And Other Changes Early last Thursday morning, the Senate passed a substitute for H.R. 748, called the “Coronavirus Aid, Relief, and Economic Security Act” (the “CARES Act”). The bill passed the House on Friday, and the President...
March 17, 2019
By Cathy Moran, Esq. (Redwood City, CA) Because its treatment varies so, we need to be asking more pointed questions of clients about both insurance policies and the debtor as beneficiary. Unmatured life insurance Starting with exemptions, §522(d)(7) makes an unmatured life insurance policy exempt without limit. So, the insurance element of a policy owned by the debtor is exempt...
Members
December 6, 2020
By Academy Staff On October 1, 2020, Jonathan W. DeLoach was appointed as a Chapter 13 Standing Trustee for the Middle District of Georgia. He inherited a razor-sharp trusteeship vacated by retiring Kristin Hurst. Jon, as he prefers to be called, received his Bachelor of Arts in History in 1988 from Emory University in Atlanta, Georgia. He is a National...
June 9, 2019
Floods, wildfires, hurricanes, tornados and other natural disasters happen quickly and often with little warning. No one can prevent these disasters from happening, but people can prepare for them. Here are some things taxpayers can do to help protect their financial safety should a disaster occur. Taxpayers should: Update emergency plans. A disaster can strike any time. Personal and business...
Copy of Hildebrand-2016
December 5, 2021
Although a Chapter 13 debtor has the absolute right to voluntarily dismiss her Chapter 13 case, even after a motion to convert is filed, the Court retains the rights to impose restrictions on the dismissal. (Waites) In re Brittany Frances Minogue, 2021 WL 4453589 (Bankr. D. S.C. September 29, 2021) Summary Brittany Minogue filed a voluntary petition under Chapter 13...
Members
Copy of Hildebrand-2016
In order to modify a plan confirmed under Chapter 12 pursuant to § 1229, the movant must demonstrate that there was a substantial change in circumstances that is sufficient to justify modification of a plan.  (Norton) Farm Credit Services of America PCA v. Swackhammer, 2023 WL 3591920 (8th Cir. BAP May 23, 2023) Case Summary The Swackhammers were farmers who...
tonydiab
June 25, 2023
Litigation Practice Group Lawsuits: 4 Cases to Know (This is the only free article we could find on Litigation Practice Group a/k/a Phoenix Law and disbarred Tony Diab.  He has been disbarred from both Nevada and California.)
April 4, 2021
The CARES Act, Public Law 116-136 had amended several parts of the Bankruptcy Code, but included sunset provisions terminating March 27, 2021. The COVID-19 Bankruptcy Relief Extension Act of 2021, H.R.1651, passed by the House and Senate and signed by the President on March 27, 2021, extended some provisions for another year. Section 1113 of the CARES Act had amended...

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: