The recent case of In re McLain, 2007 WL 3124688 (Bkrtcy.N.D.N.Y.,2007) confronted the question of whether a debtor’s Chapter 13 Plan payments must increase as secured debts were paid off.
The Debtors filed a Chapter 13 case noting that they had three vehicle loans, all of which would mature during the course of their plan. The Plan, however, did not call for payments to increase as the vehicle loans were paid off.
The Chapter 13 Trustee and an unsecured creditor, eCast Settlement Corporation each objected to the confirmation of a proposed Chapter 13 Plan on the grounds that the proposed plan failed to devote all of the Debtors’ “projected disposable income” to be received in the “applicable commitment period” within the meaning of 11 U.S.C. § 1325(b)(1)(B).
If you enjoyed this post, make sure you subscribe to my RSS feed!
