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

July 19, 2020
By Cathy Moran, Esq. (Redwood City, CA) Like so much in life, it’s all about timing. I revisited an older post here about delaying the filing of a bankruptcy til the New Year when the debtor expects to owe taxes in April. A Chapter 13 filed in January can include and pay the taxes associated with the tax year ending...
Members
February 24, 2019
On June 26, 2017, Bradford W. Caraway was appointed as the Chapter 13 Standing Trustee for the Northern District of Alabama, Southern Division. He replaced D. Sims Crawford who had been appointed as a United States Bankruptcy Judge for the Northern District of Alabama. Trustee Caraway maintains his office in Birmingham. At the time of his appointment as Standing Trustee,...
Members
Copy of Hildebrand-2016
November 5, 2023
Bankruptcy Court has authority to compel implementation of a confirmed Chapter 13 plan which, at its end required the release of a junior lien which had been given no value; attorney’s fees would be awarded to debtors’ counsel for pursuing the release.
Members
William-1_print_2019
Eighth Circuit, like the Ninth, has ruled that when Chapter 13 cases are converted to Chapter 7, any increase in a debtor's home value beyond exemptions and liens becomes part of the Chapter 7 estate. See also: Critical Case Comment – Post-Petition/Pre-Conversion Equity
Members
EAV2010
July 31, 2022
Helen Morris, the Standing Chapter 13 and 12 Trustee for West Virginia is retiring at the end of this fiscal year. I first met Helen over lunch at NACTT, where we chatted about a non-legal interest we both share, writing fiction. I was delighted to discover, then as now, a friend with a razor wit, a wicked sense of humor...
NBR cropped 2
August 7, 2022
Dear Readers: When a judge issues a 28-page opinion sanctioning a lawyer, usually that means that the lawyer has done so many things wrong that he or she has caused the judge to roll up his or her respective sleeves (probably shirt-sleeves, although the image of robe-sleeves also works for me) to deal with the mess. And in Shiheiber v....
Members
June 16, 2019
On 6/14/19, the CFPB (Bureau) announced a settlement with Student CU Connect CUSO, LLC (CUSO), a company set up to hold and manage private loans for students at ITT Technical Institute. The Bureau filed a complaint and a proposed stipulated judgment in federal district court for the Southern District of Indiana alleging that CUSO provided substantial assistance to ITT Educational...
August 9, 2020
By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction to this Series Current pandemic circumstances and economic conditions portend an onslaught of bankruptcy filings. In the consumer bankruptcy field, trustees and debtors' counsel often are uncomfortable with the rules in UCC Article 9. Here, we look at a couple of topics that touch on the interplay of Article...
Members
Academy Circle Logo Final
January 7, 2024
As a follow-up to The Academy’s December 3, 2023, issue, three Emeritus Trustees weighed in. The 12/3/23 issue included Cathy Moran’s Chapter 13 NoLook Fees: The Horns of a Dilemma and Trustee Hildebrand’s Critical Case Comment, You Gotta Fix Your Own Screw-ups, On Your Own Dime. You may also want to take note of comments on each article and add your own. Today, we offer the thoughts of two additional Emeritus Trustees. Thus a follow-up to our follow-up. 😊
Members
moran_cathy
August 20, 2023
What are the consequences of a secured lender’s failure to comply with R. 3002.1 in a prior case when the debtor files again? Significant, it seems. . . . since their attorney said he “didn’t see the need” to do so. [Can you guess, now, how this comes out?]
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: