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CA CD - "$200.00 Old Car" Deduction When Calculating Disposable Income
If the "$200.00 Old Car" deduction is alive in the CD Cal, where on the
Means Test does it go? Does it go in Part IIV Additional Expense Claims or
in Item 23 Car Ownership/Lease expense?
Thanks,
On Thu, Jul 10, 2014 at 1:05 PM, Alik Segal
wrote:
> Listmates:
>
>
> In the *Luedtke* case briefed in Mr. Drummond's article below, 9th Cir
> BAP ruled that there is no "$200.00 Old Car" deduction when calculating
> disposable income on the Means Test.
>
>
> Are the chapter 7 trustees and the US Trustee in the California Central
> District following *Luedtke*?
>
>
>
> Alik Segal
> Alik.Segal@gmail.com
> 310-362-6157
> California Central District
>
>
> *No "$200.00 Old Car" Deduction When Calculating Disposable Income*
>
> By Robert G. Drummond, on April 27th, 2014
>
> *By Robert G. Drummond, Chapter 13 Trustee for the District of Montana *
>
> In the case of *Drummond v. Luedtke (In re Luedtke)*, the *Ninth Circuit
> Bankruptcy Appellate Panel
> *
> held that debtors may not deduct a $200.00 "old car" deduction when
> calculating disposable income. The court recognized that the disposable
> income formula allows deductions for items included in the "National
> Standards and Local Standards ... issued by the Internal Revenue Service"
> contained in 707(b)(2)(A)(ii)(I). Reversing the Bankruptcy Court in
> Montana, the Bankruptcy Appellate Panel reasoned that the "old car"
> operating expense is not set forth in the IRS's National and Local
> Standards. It recognized that the $200.00 "old car" deduction is not
> mentioned in the Financial Analysis Handbook which identifies, describes,
> and interprets the National Standards and Local Standards. The "old car"
> operating expense is only mentioned in the Internal Revenue Manual, Part 5,
> Chapter 8, which deals with offers in compromise.
>
> While Chapter 8 of the Internal Revenue Manual explicitly references,
> incorporates, and applies the procedures set forth in Chapter 15 (Financial
> Analysis Handbook), this incorporation is not reciprocal. Nowhere in the
> Financial Analysis Handbook is there a general incorporation of the
> procedures and policies set forth in Chapter 8, the chapter that deals with
> offers in compromise.
>
> Nor does the holding in *Ransom v. FIA Card Services, N.A.*, 131 S.Ct.
> 716, 178 L.Ed.2d 603 (2011), authorize incorporation of Chapter 8 of the
> Internal Revenue Manual. Nothing in *Ransom* supports the proposition
> that bankruptcy courts may look to other aspects of IRS policy and
> procedure in order to interpret and supplement the National Standards and
> Local Standards.
>
> This opinion clarifies the difference between the IRS Standards that are
> incorporated into the means test and the IRS collection policies that are
> incorporated into the IRS Manual. The Standards incorporated into the
> statute are contained in the IRS tables and explained by the Financial
> Analysis Handbook.
>
> _______________________
> [image: bobdrummond]
> Robert
> G. Drummond has been the only standing Chapter 13 Trustee for the District
> of Montana since 1992. Mr. Drummond has been a member of the American
> Bankruptcy Institute since
> 1987, and a member of the National Association of Chapter 13 Trustees
> since 1992. He is a past President of the National Association of Chapter
> 13 Trustees and has twice chaired the Montana Bankruptcy Section. He has
> published numerous articles dealing with Chapter 13 bankruptcy in several
> national publications. He is the publisher of the Montana Bankruptcy
> Reporter located at www.montanabankruptcyreporter.com.
>
> --
> Alik Segal
> Alik.Segal@gmail.com
> 310-362-6157
> California Central District
>
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
If the “$200.00 Old Car” deduction is alive in the CD Cal, where on the Means Test does it go? Does it go in Part IIV Additional Expense Claims or in Item 23 Car Ownership/Lease expense?
Thanks,On Thu, Jul 10, 2014 at 1:05 PM, Alik Segal <listserv.inbox@gmail.com> wrote:
Listmates:
In the Luedtke case briefed in Mr. Drummond's article below, 9th Cir BAP ruled that there is no “$200.00 Old Car” deduction when calculating disposable income on the Means Test.
Are the chapter 7 trustees and the US Trustee in the California Central District following Luedtke?
The post was migrated from Yahoo.
Listmates:
In the *Luedtke* case briefed in Mr. Drummond's article below, 9th Cir BAP
ruled that there is no "$200.00 Old Car" deduction when calculating
disposable income on the Means Test.
Are the chapter 7 trustees and the US Trustee in the California Central
District following *Luedtke*?
Alik Segal
Alik.Segal@gmail.com
310-362-6157
California Central District
*No "$200.00 Old Car" Deduction When Calculating Disposable Income*
By Robert G. Drummond, on April 27th, 2014
*By Robert G. Drummond, Chapter 13 Trustee for the District of Montana *
In the case of *Drummond v. Luedtke (In re Luedtke)*, the *Ninth Circuit
Bankruptcy Appellate Panel
The post was migrated from Yahoo.