2009 Consumer Law Recent Developments (Part I)

deduction....We conclude that the better interpretation of 'applicable' is that it references the selection of the debtor's geographic region and number of cars." The case was remanded for the district court to consider the U.S. Trustee's alternate argument that totality of circumstances supported a finding of abuse under § 707(b)(3)(B). Ross-Tousey v. Neary, No. 07-2503, 2008 WL 5234070 (7th Cir. Dec. 17, 2008).

As Ross-Tousey points out in its discussion, the appellate courts are divided on this issue, which typically arises in Chapter 13 cases involving disposable income issues. See, e.g.: Debtor may take the ownership deduction even when the vehicle is free and clear--Ross-Tousey; Hildebrand v. Kimbro ( In re Kimbro), 389 B.R. 518 (B.A.P. 6th Cir. 2008); Pearson v. Stewart (In re Pearson), 390 B.R. 706 (B.A.P. 10th Cir. 2008). Debtor may not take the ownership deduction--Ransom v. MBNA America Bank N.A. (In re Ransom), 380 B.R. 799 (B.A.P. 9th Cir. 2007); Babin v. Wilson (In re Wilson), 383 B.R. 729 (B.A.P. 8th Cir. 2008); see also, In re Coffin, 396 B.R. 804 (Bankr. D. Me. 2008); In re Hunt, 2008 WL 5142183 (Bankr. S.D. Ind. Dec. 5, 2008).

National Guard and Reservists Debt Relief Act of 2008. Enacted on October 20, 2008, Pub. L. No. 110-438 provides temporary exclusion from the means test for reservists and members of the Guard who are called for no less than 90 days for active service or homeland defense, with an amendment to § 707(b)(2)(D) effective on December 19, 2008, for those cases commenced within the 3-year period beginning on that effective date. Official Form B22A is amended to include a new Part 1C for qualifying debtors.