Monday, February 15, 2010

Means Test Allowed Deduction for Secured Property to be Surrendered in Chapter 7 Says Robert V. Schaller

In the case of In re Brady, 419 B.R. 479 (Bankr. M.D. FL. 2009), the court addressed a hotly debated issue as a result of the US Trustee filing a motion to dismiss the Chapter 7 case on “abuse” grounds. The trustee sought dismissal because the debtor took a means test deduction for secured payments relating to debtor’s principal residence that debtor intends to surrender postpetition.

The Court rejected the US Trustee’s position and allowed the debtor to take the deduction. The Court found that under the “snapshot” approach to interpreting the Means Test, a Chapter 7 debtor may deduct from current monthly income long-term secured debt payments that are allowed on the petition date, even If the debtor intends to surrender the property securing the debt.
Warmest Regards,

Bob Schaller

Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Click for Bankruptcy Lawyer Job Opportunities.

Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.

I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.

For information about Chapter 7 bankruptcy Click Here

For information about Chapter 13 bankruptcy Click Here

You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at learn about how the bankruptcy laws can help you.

NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.

I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.

No comments:

Post a Comment