Critical Case Comment: In re Reed

By Henry E. Hildebrand, III, Chapter 13 Trustee, Middle District of Tennessee

In re Reed, 2011 WL 3801859 (Bank. D.Or., Aug. 9, 2011) (Perris)

In the Ninth Circuit, when an above-median income Chapter 13 debtor has no (or negative) projected disposable income as calculated using the mechanical approach, there is no applicable commitment period for a debtor’s Chapter 13 plan, so the plan need not last five years.

Case Summary

The Reeds’ income exceeded Oregon’s median income for a family of their size, and their Chapter 13 plan . . .

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