I. INTRODUCTION
II. OVERVIEW OF ABUSE TESTING AND SECTION 707(b)
III. EXEMPTIONS FROM THE MEANS TEST
A. The Means Test Only Applies to Individuals
B. Filed Under Chapter 7
C. Debtors With Primarily Consumer Debts
1. Student Loans
2. Mortgages
3. Taxes
4. Tort Claims
D. Military Exemptions
IV. THE MECHANICS OF SECTION 707(B)(2)
V. CURRENT MONTHLY INCOME: WHAT INCOME IS INCLUDED?
A. Regular Contributions to Household Expenses (Forms B 122A-1 and B 122C-1, Line 4)
B. Income From the Operation of a Business, Profession or Farm (Forms B 122A-1 and B 122C-1, Line 5)
1. How Are Business Expenses Treated for Determining Whether the Debtor Is Above or Below Median?
C. Rent and Other Real Property Income (Forms B 122A-1 and B 122C-1, Line 6)
D. Interest, Dividends and Royalties (Forms B 122A-1 and B 122C-1, Line 7)
E. Unemployment Compensation (Forms B122A-1, Line 6 and B122C-1, Line 8)
F. Pension and Retirement Income (Forms B 122A-1 and B 122C-1, Line 9)
G. Income From Other Sources (Forms B 122A-1 and B 122C-1, Line 10)
1. Disability Payments
2. Adoption Assistance
3. Income Tax Refunds
4. Proceeds From the Sale of an Asset
5. Loans
VI. CHAPTER 13 CONSIDERATIONS: HAMILTON V. LANNING
A. What Qualifies as a "Known or Virtually Certain" Change in Income/Expenses?
1. Change Found
2. No Change Found
B. Lanning's Effect on the Applicable Commitment Period
C. In Light of Lanning, Is Form B 122C-1 or Schedules I and J Determinative of Projected Disposable Monthly Income?
D. Practical Pointers for Reflecting a "Lanning Adjustment" in Your Petition
1. Middle District of North Carolina
2. Eastern District of North Carolina
3. Western District of North Carolina
VII. HOUSEHOLD SIZE
VIII. EXPENSES
A. National Standards
1. Food, Clothing and Other Items (Forms B 122A-2 and B 122C-2, Line 6)
2. Out-of-Pocket Health Care Allowances (Forms B 122A-2 and B 122C-2, Line 7)
B. Local Standards
1. Housing and Utilities; Insurance and Operating Expenses (Forms B 122A-2 and B 122C-2, Line 8)
2. Housing and Utilities; Mortgage or Rent Expenses (Forms B 122A-2 and B 122C-2, Line 9)
3. Housing and Utilities Adjustment (Forms B 122A-2 and B 122C-2, Line 10)
4. Transportation: Local Transportation Expenses and Vehicle Operation Expense (Forms B 122A-2 and B 122C-2, Lines 11 and 12)VI-33
5. Transportation: Vehicle Ownership/Lease Expense (Forms B 122A-2 and B 122C-2, Line 13)
6. Transportation: Additional Public Transportation Expense (Forms B 122A-2 and B 122C-2, Lines 14 and 15)
C. Other Necessary Expenses
1. Taxes (Forms B 122A-2 and B 122C-2, Line 16)
2. Involuntary Deductions for Employment (Forms B 122A-2 and B 122C-2, Line 17)
3. Life Insurance (Forms B 122A-2 and B 122C-2, Line 18)
4. Court-Ordered Payments (Forms B 122A-2 and B 122C-2, Line 19) ..VI-37
5. Education for Employment or Challenged Children (Forms B 122A-2 and B 122C-2, Line 20)
6. Child Care (Forms B 122A-2 and B 122C-2, Line 21)
7. Additional Health Care Expenses Excluding Insurance Costs (Forms B 122A-2 and B 122C-2, Line 22)
8. Optional Telephones and Telephone Services (Forms B 122A-2 and B 122C-2, Line 23)
D. Health Insurance, Disability Insurance and Health Savings Account Expenses (Forms B 122A-2 and B 122C-2, Line 25)
E. Contributions to Care of Household or Family (Forms B 122A-2 and B 122C-2, Line 26)
F. Protection Against Family Violence (Forms B 122A-2 and B 122C-2, Line 27)
G. Additional Home Energy Costs (Forms B 122A-2 and B 122C-2, Line 28)
H. Educational Expenses (Forms B 122A-2 and B 122C-2, Line 29)
I. Additional Food and Clothing Expenses (Forms B 122A-2 and B 122C-2, Line 30)
J. Charitable Contributions (Forms B 122A-2 and B 122C-2, Line 31)
K. Deductions for Debt Payment: Future Payments on Secured Claims (Forms B 122A-2 and B 122C-2, Line 33)
1. Is the Debtor Entitled to Deduct the Secured Debt Expense for Collateral That She Intends to Surrender?
2. In Chapter 13, May the Debtor Deduct Future Secured Payments on a Second Deed of Trust That Will Be Stripped?
3. Is the Debtor Limited to the Secured Debt for Two Vehicles, as He or She Is on Line 13?
L. Deductions for Debt Payment: Past-Due Payments for Claims Secured by Primary Residence, Vehicle or Other Property Necessary for Support (Forms B 122A-2 and B 122C-2, Line 34)
M. Payments on Priority Claims (Forms B 122A-2 and B 122C-2, Line 35)
IX. SPECIAL CIRCUMSTANCES
A. Special Circumstances Found
B. Special Circumstances Not Found
X. CONVERSION FROM ANOTHER CHAPTER
XI. PROCEDURAL ASPECTS AND DEADLINES
Statutory References
11 U.S.C. § 101
11 U.S.C. § 101(10A)
11 U.S.C. § 101(8)
11 U.S.C. § 109(e)
11 U.S.C. § 521(a)(1)(B)(ii)
11 U.S.C. § 526(a)(4)
11 U.S.C. § 704(b)(1)(A)
11 U.S.C. § 707(b)
11 U.S.C. § 707(b)(1)
11 U.S.C. § 707(b)(2)
11 U.S.C. § 707(b)(2)(A)
11 U.S.C. § 707(b)(2)(A)(ii)
11 U.S.C. § 707(b)(2)(A)(ii)(I)
11 U.S.C. § 707(b)(2)(A)(ii)(II)(V)
11 U.S.C. § 707(b)(2)(A)(iii)
11 U.S.C. § 707(b)(2)(B)
11 U.S.C. § 707(b)(2)(B)(i)
11 U.S.C. § 707(b)(2)(B)(ii)
11 U.S.C. § 707(b)(2)(B)(iii)
11 U.S.C. § 707(b)(2)(D)(i)
11 U.S.C. § 707(b)(2)(D)(ii)
11 u.s.c. § 707(b)(3)
11 u.s.c. § 707(b)(7)
11 U.S.C. § 1301
11 U.S.C. § 1325(a)(3)
11 U.S.C. § 1325(b)
11 U.S.C. § 1325(b)(1)(B)
11 U.S.C. § 1325(b)(2)
11 U.S.C. § 1325(b)(2)(A)(ii)
11 U.S.C. § 1329
38 U.S.C. § 3741(1)
42 U.S.C. § 10401
Fed. R. Bankr. P. 1017(e)(1)
Other References
Adinolfi v. Meyer (In re Adinolfi), 543 B.R. 612 (B.A.P. 9th Cir. 2016)
Aspen Skiing Co. v. Cherrett (In re Cherrett), 523 B.R. 660 (B.A.P. 9th Cir. 2014)
Bankr. Adm'r v. Gregory, 471 B.R. 823 (E.D.N.C. 2012).
Baxter v. Johnson (In re Johnson), 346 B.R. 256 (Bankr. S.D. Ga. 2006)
Beaulieu v. Ragos (In re Ragos), 700 F.3d 220 (5th Cir. 2012)
Blausey v. U.S. Trustee, 552 F.3d 1124 (9th Cir. 2009)
Coop v. Frederickson (In re Frederickson), 545 F.3d 652 (8th Cir. 2008)
Cranmer v. Anderson (In re Cranmer), 463 B.R. 548 (D. Utah 2011)
Dehart v. Isaacs (In re Isaacs), 605 B.R. 669 (Bankr. M.D. Pa. Aug. 26, 2019)
Drummond v. Luedtke (In re Luedtke), 508 B.R. 408 (B.A.P. 9th Cir. 2014)
Eisen v. Thompson, 370 B.R. 762 (N.D. Ohio 2007)
Fink v. Thompson (In re Thompson), 439 B.R. 140 (8th Cir. B.A.P. 2010)
Hamilton v. Lanning, 560 U.S. 505 (2010)
Harrington v. Bailey (In re Bailey), No. 19-04006-CJP, 2021 Bankr. LEXIS 1158, 2021 WL 1731768 (Bankr. Mass. Apr. 30, 2021)
Hildebrand v. Petro (In re Petro), 395 B.R. 369 (6th Cir. B.A.P. 2008)
In re Abisso, 490 B.R. 464 (Bankr. D. Mass. 2013)
In re Adams, 2007 WL 3091583, No. 06-16027 (Bankr. D. Md. Oct. 19, 2007)
In re Addison, 580 B.R. 24 (Bankr. E.D.N.Y. 2018)
In re Afko, 501 B.R. 202 (Bankr. S.D.N.Y. 2013)
In re Alexander, 344 B.R. 742 (Bankr. E.D.N.C. 2006)
In re Allen, 2010 WL 1780295, No. 09-08310 (Bankr. E.D.N.C. May 3, 2010)
In re Amaro, No. 20-80051, 2020 Bankr. LEXIS 2751, 2020 WL 6937704 (Bankr. N.D. Ill. Sept. 30, 2020)
In re Anderson, 444 B.R. 505 (Bankr. W.D.N.Y. 2011)
In re Anderson, No. 19-56381, 2020 WL 1845037 (Bankr. E.D. Mich. Apr. 10, 2020)
In re Anderson, No. 19-56381, 2020 Bankr. LEXIS 989 (Bankr. E.D. Mich. Apr. 10, 2020)
In re Andrick, 604 B.R. 577 (Bankr. D. Colo. 2019)
In re Ansar, 383 B.R 344 (Bankr. D. Minn. 2008)
In re Armstrong, 2007 WL 1544591, No. 06-31414 (Bankr. N.D. Ohio May 24, 2007)
In re Arnold, 376 B.R. 652 (Bankr. M.D. Tenn. 2007)
In re Babson, 2011 WL 5902664, No. 11-00673 (Bankr. E.D.N.C. Nov. 1, 2011)
In re Baden, 396 B.R. 617 (Bankr. M.D. Pa. 2008)
In re Barbour, 2009 WL 3053697, No. 09-00553 (Bankr. E.D.N.C. Sept. 18, 2009)
In re Barbutes, 436 B.R. 518 (Bankr. M.D. Tenn. 2010)
In re Barnes, 528 B.R. 501 (Bankr. S.D. Ga. 2015)
In re Barr, 341 B.R. 181 (Bankr. M.D.N.C. 2006)
In re Barraza, 346 B.R. 724 (Bankr. N.D. Tex. 2006)
In re Barrett, 371 B.R. 860 (Bankr. S.D. Ill. 2007)
In re Batzkiel, 349 B.R. 581 (Bankr. N.D. Iowa 2006)
In re Belly, No. 11-02807 (Bankr. E.D.N.C. Oct. 25, 2011)
In re Bembenek, 2008 WL 2704289, No. 08-22607 (Bankr. E.D. Wis. July 2, 2008)
In re Bender, 373 B.R. 25 (Bankr. E.D. Mich. 2007)
In re Borca, No. 18-02019-5-DMW, 2021 Bankr. LEXIS 2045, 2021 WL 3370162 (Bankr. E.D.N.C. Aug. 2, 2021)
In re Brown, 500 B.R. 255 (Bankr. S.D. Ga. 2013)
In re Brown, 546 B.R. 642 (Bankr. E.D.N.C. 2016)
In re Brunck, 2016 Bankr. LEXIS 590, 2016 WL 770571 (Bankr. S.D. Ind. Feb. 24, 2016)
In re Bryant, No. 08-32261...
