In re Martin, 464 B.R. 798, 802–07 (Bankr. C.D. Ill. 2012) (Perkins)

Applicable commitment period is temporal; debtor with CMI greater than applicable median family income who has zero or negative projected disposable income must propose a five-year plan. “[U]nder BAPCPA, the applicable commitment period is 3 years for a below-median debtor and 5 years for an above-median debtor. Those periods may be shortened only to the extent that unsecured claims may be paid in full more quickly. . . . All four courts of appeal that have considered the issue agree that section 1325(b) is a temporal requirement that sets a minimum plan duration . . . of five years for above-median debtors who have positive disposable income . . . . The Sixth Circuit in [Baud v. Carroll, 634 F.3d 327 (6th Cir. Feb. 4, 2011) (Cole, Clay, Katz),] and the Eleventh Circuit in [Whaley v. Tennyson (In re Tennyson), 611 F.3d 873 (11th Cir. July 16, 2010) (Tjoflat, Wilson, Ebel),] have held that the five-year term applies equally to those above-median debtors who have zero or negative projected disposable income. The Eighth Circuit in [Coop v. Frederickson (In re Frederickson), 545 F.3d 652 (8th Cir. Oct. 27, 2008) (Wollman, Beam, Riley),] declined to decide the issue. The Ninth Circuit in [Maney v. Kagenveama (In re Kagenveama), 541 F.3d 868 (9th Cir. June 23, 2008) (Pregerson, Siler, Bea),] held that the requirement does not apply if the debtor has zero or negative projected disposable income. . . . [A] 0% plan may be permissible, but the 5-year duration requirement for above-median debtors is not affected. . . . A step-down in payments to $0 once secured and priority claims are paid based solely on a negative number on line 59 is a novel proposition that would run afoul of other applicable confirmation standards. . . . In agreement with Baud, Tennyson, Frederickson and Kagenveama, this Court holds that the ‘applicable commitment period’ as that phrase is used in section 1325(b) establishes a temporal or durational standard for plan confirmation purposes, once an objection is filed. In agreement with Baud and Tennyson, this Court also holds that a chapter 13 debtor who is above-median status under the means test calculation, is required as a condition of confirmation to propose a plan with a durational term of five years, without exception for zero or negative projected disposable income.”

No Author Biography has been linked to this Article.

Related Articles

Copy of Hildebrand-2016
October 23, 2022
A referral fee by retained special counsel paid to debtor’s attorney violates the prohibition in § 504 in that it constitutes an unauthorized splitting of attorney’s fees. (Williamson) In re Davis, 638 B.R. 198 (Bankr. M.D. Fla. March 31, 2022) Case Summary Four years after Lisa Davis filed her Chapter 13 petition, she was involved in an auto accident resulting...
Members
March 15, 2020
By Professor Nancy Rapoport, University of Nevada Dear Readers: The marvelous, indefatigable Regina Logsdon just forwarded me this hypothetical: Post-confirmation, debtor/client gets upset with attorney. Let’s assume for this scenario that the attorney hasn’t done anything wrong – perhaps just a difference of opinion on a plan modification (or not). Debtor/client says ugly things to attorney – name-calling, etc. THEN...
Members
July 28, 2019
By John P. Gustafson, United States Bankruptcy Judge, Northern District of Ohio, Western Division Click here for Part 1 Click here for Part 2 C. What Post-Petition Assets Are Property . . . It looks like you are not signed in or registered! This content is only available to members. Join Now Or Sign In Below: Username or Email Password...
Members
September 19, 2021
By Michael J. McCormick, Esq., McCalla Raymer Leibert Pierce, LLC (Roswell, GA) Escrow 101 – Part 1 Escrow 101 – Part 2 Escrow 102 – Part 1 Escrow 102 – Part 2
Members
Copy of Hildebrand-2016
January 16, 2022
While a 13 trustee is partially insulated by the Barton doctrine from being dragged into state court, if a movant seeks authority from the Bankruptcy Court to pursue the trustee and satisfies the conditions of the Barton doctrine, the trustee may be subject to state court judicial proceedings. (Hall) In re Alexander Louis Bednar, 2021 WL 1625399 (Bankr. W.D. Okla....
Members
moran_cathy
July 17, 2022
Mention keeping time records to a bankruptcy lawyer and you’re likely met with expressions of utter revulsion. All too many assert that the major appeal of being a bankruptcy lawyer is precisely that they don’t have to keep time. Between flat fee deals with clients, and no look fees in Chapter 13, they feel liberated from the clock and the...
Members
lynch
December 31, 2023
“Currently, if a district’s weighted caseload is below one-thousand per the number of judges in that district . . . in all probability, recommend that the circuit not replace the judge.”
Members
NN Photo
September 11, 2022
In a recent opinion, the 9th Circuit BAP affirmed a bankruptcy judge’s decision that sanctions order by a state court were nondischargeable under § 523(a)(6)i and that the state court proceeding precluded litigating the issue in bankruptcy.ii The sanctions originate from a California doctor’s defamation suit against two former patients. The Doctor initiated the action against two women who wrote...
Members
Copy of Hildebrand-2016
July 17, 2022
A referral fee by retained special counsel paid to debtor’s attorney violates the prohibition in § 504 in that the referral fee constitutes an unauthorized splitting of attorney’s fees. (Williamson) In re Davis, 638 B.R. 198 (Bankr. M.D. Fla. March 31, 2022) Case Summary Four years after Lisa Davis filed her Chapter 13 petition, she was involved in an auto...
Members
April 14, 2019
By William J. Purdy, III, Simmons & Purdy (Soquel, CA) Hundreds of thousands of taxpayers in the past few weeks have looked at or at least thought about, Form 1099-A or Form 1099-C documents they have received. Some arrived in the tax year a debt was allegedly cancelled. Others are issued by financial instructions many years after they should have...
Members

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: