[CLBS] Means Test Question

[Randy French]

I had not seen an answer to this post yet.  Laura, have you received any
response?  My thoughts are below.

Can secured creditor payments be deducted for the means test on debt where
the debtor is surrendering the collateral in the chapter 7?  A decision in
Kelvie, Case No. 06-01434-TLM , issued 7/10/07, answers in the affirmative.
See Varner, Case No. 08-20806-TLM, issued 5/2/209 for the ch 13 analysis.  I
have not looked to see whether these are still god law.

Where the debtor has not made payments on the debt for a few months?  If the
secured debt payment can be deducted, then 707(b)(2)(A)(iii) (II) allows an
deduction for an amount to cure an arrearage for specific kinds of debts -
primary residence, motor vehicle or other property necessary for support of
the debtor and dependents.  I am not aware of a decision addressing this.

Where the debtor is the guarantor of business debt but has not personally
made the payments?  If the debt is secured by Debtor's assets , then I would
think that 707(b)(2)(A)(iii)  would apply. 

Let me know if the case law has changed all of this and I am misleading
everyone.


Thanks.
Randy French

Law Office of Randal J. French, P.C.
Attorneys at Law
AP.O. Box 836 PBoise, ID 83701 B(208) 859-6881( 

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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Laura Burri
Sent: Wednesday, January 25, 2017 3:29 PM
To: CLBS at admws.idaho.gov
Subject: [CLBS] Means Test Question

Chapter 7 means test with a debtor with income above the threshold means
test number. Can secured creditor payments be deducted for the means test on
debt where the debtor is surrendering the collateral in the chapter 7?
Where the debtor has not made payments on the debt for a few months? Where
the debtor is the guarantor of business debt but has not personally made the
payments?

I would appreciate your thoughts.  Laura

Laura E. Burri
Morrow & Fischer, PLLC
332 N Broadmore Ste 102
Nampa, ID 83687
Phone 208-475-2200
lburri at morrowfischer.com<mailto:lburri at morrowfischer.com>

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