U.S. Supreme Court: Debtor May Not Deduct Car Payments

Lawyers USAJanuary 18, 2011

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Summary


A Chapter 13 above-means debtor who doesn't make loan or lease payments may not take the deduction that is otherwise available for ownership of an automobile, the U.S Supreme Court has ruled.

The debtor in the case included in his disposable income calculation for his Chapter 13 plan a deduction from his monthly expenses for the "ownership cost" of a vehicle that he owned free and clear.

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Extract


U.S. Supreme Court: Debtor May Not Deduct Car Payments

One of his creditors objected to the plan, arguing that the debtor should on...

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