In Re Robinson
449 B.R. 473
Bankr. E.D. Va.2011Background
- Debtor Kendrick S. Robinson, Sr. filed a Chapter 13 petition on June 28, 2010 and filed Form B22C with his petition.
- Debtor proposed a Chapter 13 plan to pay $27,600 to the Trustee over five years.
- Chapter 13 Trustee objected to confirmation on the basis that the plan did not commit all projected disposable income due to alleged improper deductions on Form B22C.
- The Debtor has an atypical household: he is an unmarried father with four children (ages 14, 8, 7, and 6) who spend a majority of nights with him on a varying schedule, necessitating a three-bedroom apartment.
- Debtor is subject to aggregate child support payments of $1,442.87 per month and bears substantial medical costs for his youngest son, with monthly medical expenses varying.
- Evidence showed the Debtor’s current monthly income for the six months prior to filing was $8,091.42, and he initially claimed a household size of one, which affected the means-test calculation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper household size for Form B22C and disposable income calculation | Trustee argues for a conventional or IRS-based approach to household size | Robinson contends his atypical arrangement requires a flexible, economic-unit assessment | Economic unit approach adopted; three-person household recognized for means testing |
| Whether Census or IRS-based methods appropriately define household size | Trustee contends traditional methods (heads on beds/IRS dependents) are controlling | Robinson argues these methods misstate his true economic reality | Both traditional approaches rejected as inadequate; economic-unit approach chosen |
| Court’s discretion post-Lanning to adjust projected disposable income | Trustee seeks strict mechanical application of §1325(b)(1)(B) | Robinson argues flexibility is allowed to reflect known facts at confirmation | Court may adjust to reflect reality; Lanning cited to support flexible application |
| Necessity of amending Form B22C to reflect household of three | Trustee would renew objections if form remains inconsistent | Robinson must amend B22C to show household of three | Debtor ordered to amend B22C to reflect household of three; Trustee may renew objections within 14 days |
Key Cases Cited
- In re Lanning, 130 S. Ct. 2464 (2010) (district court discretion to account for known changes in income/expenses at confirmation)
- Smith v. United States, 508 U.S. 223 (1993) (statutory context matters for interpretation of terms and context in means testing)