Opinion Published in the Bankruptcy Reporter-Ann Hook Belknap

Adjunct Professor Ann Hook Belknap, Paralegal Studies, recently tried a case on an issue of the first impression in the Bankruptcy Court of the Eastern District of Pennsylvania. Belknap won the case and the opinion was published in the Bankruptcy Reporter (In re Davis, 392 Bankr. E.D.Pa. 2008). The case was also considered one of the top ten consumer cases at the 13th Annual Bankruptcy Institute. The issue involved disposable income for above median income debtors in a Chapter 13 case. Specifically, above median debtors with negative disposable income as determined by the B22C Form filed a 36 month plan. Their actual income exceeded their actual expenses by $872 a month. Most of the plan payments were to pay mortgage arrears. The Chapter 13 Trustee objected to confirmation arguing that because the debtors were above median, their plan must be a 60-month plan. The Court ruled that the Form B22C, not Schedules I and J, govern what should be available to unsecured creditors in the plan. The Court also ruled that social security benefits do not need to pay unsecured creditors under Form B22C. The Trustee’s objection was overruled and the plan was confirmed.