Topic Background / Overview: Before the 2005 bankruptcy law amendments (BAPCPA), the trustee and judge used Form 6, Schedule I (income) and Form 6, Schedule J (expenses) to determine a debtor’s likelehood of succeeding in a chapter 13 plan.
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Baud v. Carroll, No. 11-27 (U.S.)The U.S. Courts of Appeals agree that where an above-median-income debtor has positive disposable income, as calculated under section 1325(b)(2) of the Bankruptcy Code and the applicable form, the debtor’s Chapter 13 plan must run for five years.
On February 4, 2011, the Sixth Circuit Court of Appeals (which governs bankruptcies filed in the Greater Cincinnati and Dayton areas) issued a decision in the case of Baud v.Carroll, 634 F.3d 327 (6 th Cir. 2011). Prior to the Baud decision, “above-median” Chapter 13 debtors (please see my previous blog entry) could consolidate their debt into less than sixty monthly payments as long as.
Other case filed on September 15, 2009 in the U.S. Court of Appeals, Sixth Circuit
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Social Security Income in Bankruptcy Posted By HainesKrieger On January 16, 2014 | Last modified: january 16, 2014 The treatment of Social Security benefits in Chapter 13 cases is a hot button issue in bankruptcy courts around the country.
· The decisions of our sister circuits support this conclusion. In Baud v. Carroll, 634 F.3d 327 (6th Cir.2011), the Sixth Circuit considered a claim made by a Michigan trustee under similar circumstances. The Baud trustee was also trying to convince the court to recognize social security benefits as projected disposable income. See id. at 330.