In re Lawrence, 15-00304
Aug 24, 2016OUTCOME: Motion to Dismiss Denied
Under the chapter 7 means test, debtors may deduct secured payments that are "scheduled as contractually due" on collateral they intend to surrender. A debtor is entitled to deduct "the total of all am ... ounts scheduled as contractually due to secured creditors in each month of the 60 months following the date of the filing of the petition" pursuant to § 707(b)(2)(A)(iii)(I). Accordingly, for monthly mortgage payments "scheduled as contractually due" the § 707(b)(2)(A)(iii)(I) expense is allowed without any regard to whether the expense would be permitted when determining "projected disposable income" in a Chapter 13 case.
