(7th Cir. Apr. 23, 2015)
The trustee argued that child support payments should not be categorically excluded from the calculation of a chapter 13 debtor’s disposable income. The debtor was an above-median debtor receiving $400 per month in child support payments. The trustee contended this amount should not be excluded from her disposable income because she also applied the standard deductions, which, he argued, duplicated expenses that would be covered by the child support payments. The Seventh Circuit holds that the bankruptcy court correctly excluded the payments from the debtor’s disposable income. Opinion below.
Author: Matt Lindblom