Cranmer v. Anderson
463 B.R. 548
D. Utah2011Background
- Cranmer filed a Chapter 13 petition on March 12, 2010 and submitted initial and amended Schedules I & J using Form 22C, excluding SSI from CMI per §101(10A)(B).
- The schedules showed a two-person household with annual income above Utah’s median and a five-year commitment period with $292.44 monthly disposable income.
- Appellee Trustee objected to plan confirmation, arguing SSI must be included in PDI for good faith and feasibility, despite exclusion from CMI/DI calculations.
- On June 28, 2010 the bankruptcy court denied confirmation, holding SSI must be included in PDI and could affect good faith under Hamilton v. Lanning.
- Cranmer amended the plan to include SSI in Schedule I; the bankruptcy court confirmed the amended plan on September 21, 2010, but later dismissed the case for noncompliance with a different plan.
- Cranmer appeals the dismissal, asserting SSI is exempt from repayment plans under 42 U.S.C. § 407 and that SSI should not be included in PDI.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SSI must be included in projected disposable income (PDI). | Cranmer argues SSI is excluded by §407 and §101(10A)(B) from PDI. | Anderson contends SSI is not excluded from PDI and may affect plan feasibility/good faith. | SSI should not be included in PDI; PDI excludes SSI. |
| Whether excluding SSI from PDI demonstrates bad faith and justifies dismissal. | Excluding SSI aligns with statute; inclusion would render plan in bad faith. | SSI exclusion still permits consideration of good faith and plan feasibility. | Exclusion of SSI does not create bad faith; dismissal on that basis is inappropriate. |
| Whether the bankruptcy court erred by applying Hamilton to require SSI inclusion in PDI. | Hamilton supports treating SSI as excluded from PDI; unusual-case considerations do not mandate inclusion. | Hamilton allows forward-looking adjustments where known changes exist; SSI may be treated as such a factor. | Hamilton supports excluding SSI from PDI; misapplication occurred. |
Key Cases Cited
- In re Welsh, 440 B.R. 836 (Bankr.D.Mont.2010) (SSI not included in DI/PDI calculations)
- In re Bartelini, 434 B.R. 285 (Bankr.N.D.N.Y.2010) (SSI cannot be compelled into DI/PDI)
- In re Thompson, 439 B.R. 140 (8th Cir. BAP 2010) (SSI not part of projected disposable income)
- In re Radford, 265 B.R. 827 (Bankr.W.D.Mo.2000) (pre-BAPCPA considerations; SSI treatment)
- Baud v. Carroll, 634 F.3d 327 (6th Cir.2011) (SSI exclusion under §101(10A) and DI/PDI interplay)