Rental Expenses Not Included in Ch. 13 Disposable Income Calculation

A debtor doesn’t have to account for monthly rental expenses when calculating disposable income for Chapter 13 because it isn’t a mortgage or other debt secured by a home, the U.S. Bankruptcy Court for the Southern District of Texas held.

This conclusion in a case not previously addressed by the court flows from the plain language of Official Form 122C-2, which helps Chapter 13 debtors calculate their disposable income, Judge Eduardo V. Rodriguez wrote June 18.

Felipe Hernandez filed Chapter 13, proposing to pay three payments of $350, and 57 monthly payments of $400, for a 9.24 percent dividend to ...