§ 99.1     In General
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 99.1, at ¶ ____, LundinOnChapter13.com (last visited __________).
[1]

For all Chapter 13 debtors, disposable income for purposes of the confirmation test in § 1325(b) begins with a determination of CMI.1 To reach disposable income, CMI must then be reduced by five amounts:

 

  
Amounts included in CMI by § 101(10A)(B) but not received by the debtor;2
 

 

 

 

  
“Amounts reasonably necessary to be expended—,” determined in accordance with § 1325(b)(2)(A) and (B) for debtors with CMI less than applicable median family income3 and determined in accordance with § 707(b)(2)(A) and (B) for debtors with CMI greater than applicable median family income;4
 

 

 

 

  
Child support payments, foster care payments and disability payments received by the debtor, to the extent reasonably necessary to be expended for the child;5
 

 

 

 

  
Amounts required to repay a pension loan described in §§ 1322(f) and 362(b)(19);6 and
 

 

 

 

  
Wages withheld and received by an employer as contributions to an employee benefit plan, deferred compensation plan, tax-deferred annuity or health insurance plan described in § 541(b)(7).7
 

 

 

[2]

In the sections above, the calculation of CMI for all debtors was discussed.8 “Amounts reasonably necessary to be expended—” were analyzed for debtors with CMI under9 and over10 applicable median family income. What remains is to explore the four additional deductions from CMI that are necessary to determine disposable income. The four remaining deductions from CMI apply to all debtors without regard to whether CMI is greater or less than applicable median family income.


 

1  See 11 U.S.C. § 101(10A), discussed in § 468.1 [ Current Monthly Income: The Baseline ] § 92.3  Current Monthly Income: The Baseline.

 

2  See § 489.1 [ Amounts Paid by Others under § 101(10A)(B) ] § 99.2  Amounts Paid by Others under § 101(10A)(B).

 

3  See § 470.1 [ Section 1325(b)(2)(A) and (B): “Amounts Reasonably Necessary to Be Expended—” When CMI Is Less Than Applicable Median Family Income ] § 93.1  Section 1325(b)(2)(A) and (B): “Amounts Reasonably Necessary to Be Expended—” When CMI Is Less Than Median Family Income.

 

4  See discussion beginning at § 94.1  Big Picture: Too Many Issues.

 

5  See 11 U.S.C. § 1325(b)(2), discussed in § 490.1 [ Child Support, Foster Care and Disability Payments ] § 99.3  Child Support, Foster Care and Disability Payments.

 

6  See §§ 433.1 [ When Does § 362(c)(4) Apply? ] § 61.1  When Does § 362(c)(4) Apply? and 491.1 [ Pension Loan Repayments ] § 99.4  Pension Loan Repayments.

 

7  See § 492.1 [ Employee Benefit Plan Contributions ] § 99.5  Employee Benefit Plan Contributions.

 

8  See §§ 379.1 [ Form B22C: Statement of Current Monthly Income ] § 36.19  Form 122C-1: Statement of Current Monthly Income and 468.1 [ Current Monthly Income: The Baseline ] § 92.3  Current Monthly Income: The Baseline.

 

9  See § 470.1 [ Section 1325(b)(2)(A) and (B): “Amounts Reasonably Necessary to Be Expended—” When CMI Is Less Than Applicable Median Family Income ] § 93.1  Section 1325(b)(2)(A) and (B): “Amounts Reasonably Necessary to Be Expended—” When CMI Is Less Than Median Family Income.

 

10  See discussion beginning at § 94.1  Big Picture: Too Many Issues.