66 Collier Bankr. Cas. 2d 1801
Bankr. D. Colo.2011Background
- Debtors filed an Amended Chapter 13 plan and the Trustee objected to it.
- The sole issue is whether unemployment compensation must be included in the calculation of current monthly income (CMI) on Form 22C.
- Debtors argue unemployment compensation is a Social Security Act benefit excluded from CMI by 11 U.S.C. § 101(10A)(B).
- The Trustee argues the unemployment compensation is not excluded and should be included in CMI, potentially shifting debtors to above-median income and blocking confirmation.
- The parties agree there are no disputed facts and that the court may decide on briefs; inclusion would affect plan feasibility.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unemployment compensation is excluded from CMI under § 101(10A)(B). | Debtors: unemployment comp is a Social Security Act benefit excluded by § 101(10A)(B). | Trustee: unemployment comp is not received under SSA and should be included. | Unemployment comp is a benefit but not 'received under' SSA; include analysis shows exclusion does not apply; plan denial follows. |
Key Cases Cited
- In re Baden, 396 B.R. 617 (Bankr.M.D.Pa.2008) (unemployment compensation included in CMI prior to BAPCPA; statutory interpretation)
- In re Kucharz, 418 B.R. 635 (Bankr.C.D.Ill.2009) (explains nexus between state programs and federal incentives under SSA; interpretation of 'under' SSA)
- In re Washington, 438 B.R. 348 (M.D.Ala.2010) (discusses federal-state unemployment program interplay and SSA connections)
- In re Sorrell, 359 B.R. 167 (Bankr.S.D.Ohio 2007) (statutory history and interpretation in BAPCPA context; means test)
- In re Munger, 370 B.R. 21 (Bankr.D.Mass.2007) (argues unemployment benefits included in CMI under remedial reading)