§ 95.1     In General
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 95.1, at ¶ ____, LundinOnChapter13.com (last visited __________).
[1]

To determine “amounts reasonably necessary to be expended—” for a Chapter 13 debtor with CMI greater than applicable median family income,1 CMI is “reduced” by the “monthly expenses” described in § 707(b)(2)(A)(ii)(I). Subclause (I) of clause (ii) of § 707(b)(2)(A) contains no less than 10 separate kinds of monthly expenses that are allowed to reduce CMI for a Chapter 13 debtor with CMI greater than applicable median family income. Three of the 10 kinds of allowed monthly expenses are “standard” amounts specified by the IRS.2 One of the IRS Standards contains 16 additional categories of expenses that may be allowed as reductions of CMI.3 Seven other kinds of monthly expenses are separately stated in sentences or subclauses of § 707(b)(2)(A)(ii).4 There are “netting” issues5 and problems accounting for spouses6 throughout the monthly expense allowances in § 707(b)(2)(A)(ii).

[2]

The many classes and categories of monthly expenses that are allowable as “amounts reasonably necessary to be expended—” to reduce CMI for a Chapter 13 debtor with CMI greater than applicable median family income are discussed by type and statutory origin below.7 These reductions of CMI are claimed by a Chapter 13 debtor with CMI greater than applicable median family income on Official Form B22C.8 Some of the monthly expenses described in the statute are difficult to find in Official Form B22C; some of the monthly expenses allowed by the statute seem to be missing altogether from Official Form B22C; and other monthly expenses allowed by the statute are altered by the instructions and configuration of Official Form B22C.9 To take full and accurate advantage of the monthly expenses defined to be “amounts reasonably necessary to be expended—” by § 707(b)(2)(A)(ii), debtor’s counsel should consider modifications to Official Form B22C.


 

1  See § 469.1 [ Comparison of CMI to Applicable Median Family Income: § 1325(b)(3) ] § 92.4  Household Size and Comparison of CMI to Median Family Income: § 1325(b)(3).

 

2  See the National Standards in § 475.1 [ National Standards ] § 95.2  National Standards; the Local Standards in § 476.1 [ Local Standards: Housing and Transportation ] § 95.3  Local Standards: Housing and Transportation; and the categories of Other Necessary Expenses in § 477.1 [ Other [Necessary] Expenses—In General; All Categories ] § 95.4  Other [Necessary] Expenses—In General; All Categories.

 

3  See § 477.1 [ Other [Necessary] Expenses—In General; All Categories ] § 95.4  Other [Necessary] Expenses—In General; All Categories.

 

4  See discussion beginning at § 95.21  Health and Disability Insurance.

 

5  See § 472.1 [ Netting Issues, Including Exclusion of Payments for Debts ] § 94.2  Netting Issues, Including Exclusion of Payments for Debts.

 

6  See § 473.1 [ Accounting for Spouses ] § 94.3  Accounting for Spouses.

 

7  See §§ 474.1 [ In General ] § 95.1  In General and 484.1 [ Home Energy Costs ] § 95.27  Home Energy Costs.

 

8  See Lines 24–59 of Official Form B22C, discussed in § 380.1 [ Form B22C: Disposable Income Calculation ] § 36.21  Form 122C-2: Disposable Income Calculation.

 

9  See § 380.1 [ Form B22C: Disposable Income Calculation ] § 36.21  Form 122C-2: Disposable Income Calculation.