In re Pak - Adversary Pak vs. ECast Case No: NC-07-1201

Plans - Chapter 13 debtor's historically-based "disposable income" is mere starting point in fixing "projected disposable income."

The Ninth Circuit BAP has held that a Chapter 13 debtor's historically- based "disposable income" is merely the starting point in determining the "projected disposable income" that the debtor will have to devote to the payment of unsecured creditors, in order to obtain confirmation of any plan that which result in less than a 100% distribution on creditor claims over the objection of the trustee or an unsecured creditor. If the interpretation of "projected disposable income" is not to degenerate into absurdity, deriving "projected disposable income" from "disposable income" must be subject to the presentation of contrary evidence prior to confirmation of the debtor's proposed Chapter 13 plan.

Date of decision: 11/28/07

Full opinion click here.