In re Alexander, No. 12-40408-jwv13, 2012 WL 3156760, at *2–*3 (Bankr. W.D. Mo. Aug. 1, 2012) (Venters)

Local Standards transportation ownership expense is only available for the purchase or lease of a vehicle; debtor cannot claim ownership expense deduction based on $513 secured loan four days before petition. Debtors owned two cars both having over 130,000 miles and in need of repairs. Four days before petition, debtors obtained a $513 loan secured by one of the cars. Stated reason for this borrowing was to allow the debtors to maintain or replace their aging vehicles in light of prior rulings in the district that debtors were not entitled to the $200 additional expense deduction for older, high-mileage cars. “The Court has found three references to vehicle ownership expenses in the [IRS] Manual: Section 5.15.1.7 . . . states, ‘The transportation standards consist of nationwide figures for loan or lease payments referred to as ownership costs.’ Section 5.15.1.9 . . . refers to a ‘vehicle payment (lease or purchase).’ And, most specifically, § 5.8.5.20.3 . . . states: ‘Ownership Expenses—. . . are allowed for purchase or lease of a vehicle.’ . . . [T]he ownership expenses provided for in the Local Standards, as incorporated into § 1325(b) (via § 707(b)(2)) refer to expenses related to the purchase or lease of a vehicle. And the fact that a loan is secured by a car, by itself, does not make the loan a vehicle ownership expense.”

No Author Biography has been linked to this Article.

Related Articles

ahern_larry_regular
September 18, 2022
Introduction In In re Village Apothecary, Inc.,1 the Sixth Circuit last month reduced an attorney's fees by half, where the professional's services were not "successful." The results obtained (or, actually, the lack of results) justified cutting the fees of attorneys for a Chapter 7 trustee by 50%. Why It Matters to Chapter 13 People This analysis of the implications of...
Members
April 5, 2020
By Robert (Bob) Schuman, Owner/Managing Broker, Network Financial Group Is it 2008 again? For us in the mortgage industry, we woke up this week feeling as if during the night, we were transported back to 2008 when the mortgage industry basically collapsed. Then, Fannie Mae, Freddie Mac, and the FHA were the exceptions. As of March 25, 2020, like everything...
Members
Hale-Andrew-Antico
March 24, 2024
“. . . the law is so clear that of course it's not allowed. However, some courts have twisted themselves into pretzels to create a creditor right to postpetition unmatured interest.” The article explores this not so simple issue by examining relevant sections of the Bankruptcy Code and case law from various circuit courts.
Members
August 25, 2019
By Karin N. Amyx, Staff Attorney to the Trustee Carl Davis (Wichita, KS) To me, the word “timeshare” conjures up images of a dark conference room at a resort hotel where unwitting tourists are being goaded into signing usury contracts in exchange for a free meal ticket at the buffet. But what is a timeshare? And how do you deal...
Members
MichaelBSlade
October 27, 2024
Seventh Circuit Announces the Appointment of Michael B. Slade to the U.S. Bankruptcy Court for the Northern District of Illinois
NBR cropped 2
June 25, 2023
Dear Readers: By now, I’m hoping that all of you are aware of the sad story of the plaintiff’s lawyers in Mata v. Avianca, Inc., Case No. 22-cv-1461 (PKC) (S.D.N.Y).  Lawyer A used ChatGPT to “research” a brief; Lawyer A was not admitted in the jurisdiction, so Lawyer B (same firm) entered a notice of appearance; Lawyer B filed Lawyer...
Members
February 3, 2019
By Henry E. Hildebrand, III, Chapter 13 Trustee for the Middle District of TN (Nashville) Where a Chapter 13 plan provides that a mortgage payment will be paid “outside the plan,” the plan does not “provide for” the mortgage payment and, accordingly, the discharge under § 1328 is not applicable to the mortgage obligation. Dukes v. Suncoast Credit Union, 909...
Members
July 28, 2019
Tiffany M. Cornejo was appointed as the Chapter 13 Standing Trustee for the District of New Mexico on December 1, 2017. She took the reins from retiring Kelley Skehen. Ms. Cornejo received her Bachelor of Science in Journalism (B.S.J.) degree at the University of Kansas in Lawrence in 2002 and remained there to obtain her Juris Doctor in 2005. She...
schantz
November 19, 2023
It is with sadness that we report the passing of William (“Bill”) Schantz formerly of the Office of UST.
September 29, 2019
By The Honorable Hannah Blumenstiel Yes, MORE on SBRA. We realize that to attorneys February of 2020 seems a LONG way away but it really isn’t. We are building our library on this important legislation so it is available when YOU are ready for it. In this week’s installation, Judge Blumenstiel, analyzes the legislation. The first two and a half...
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: