Scott Coffin (the “Debtor”) appeals from an order, dated November 18, 2008, issued by the United States Bankruptcy Court for the District of Maine (the “Order”) 2 denying confirmation of his chapter 13 plan because it included a deduction for an ownership expense on a vehicle which was neither leased nor encumbered. The bankruptcy court concluded that, under § 707(b)(2)(A)(ii)(I), 3 the vehicle ownership expense deduction is not “applicable” to above-median debtors who have no loan or lease payments, and that the Debtor had therefore failed to apply all of his disposable income to make payments to unsecured creditors as required by § 1325(b)(1)(B).
We do not say that the bankruptcy court’s well-reasoned decision failed to reach a sensible conclusion. However, the statute, as drafted, and in light of its underlying policies, mandates a different result. Accordingly, we conclude that the mandatory language of § 707(b)(2)(A)(ii)(I), read in the context of its statutory scheme, purposes, and policies, provides that above-median debtors “shall” enter the Internal Revenue Service (the “IRS”) Local Standards (rather than their actual expenses) onto their Form B22C 4 in determining their projected net *783 disposable income. For this reason, we REVERSE.
BACKGROUND
The relevant facts are not in dispute.
The Debtor has current monthly income 5 which is above the median for the District of Maine. He owns three motor vehicles outright: a 2002 Chevrolet Cáma-ro, a 1973 Cadillac El Dorado, and a 1987 Chevrolet plow truck. On his amended Schedule I, the Debtor disclosed total monthly gross income of $8,766.73, and total net monthly take home pay of $6,557.03. On his amended Schedule J, he disclosed monthly living expenses totaling $5,859.93. On his amended 6 Form B22C, the Debtor calculated deductions from his income totaling $8,692.86, leaving $73.87 in projected monthly disposable income. As part of those deductions, the Debtor claimed ownership expenses of $478.00 a month for each of two vehicles, for a total of $956.00 per month, but listed no monthly debt payments on those vehicles.
The Debtor’s Second Amended Plan, in which he proposed a 16 percent distribution to general unsecured creditors, “depended] on his entitlement to the two $478 deductions.” ECast Settlement Corporation (“eCast”), an unsecured creditor in the Debtor’s bankruptcy, objected to confirmation of the Second Amended Plan on the grounds that the Debtor had understated his projected disposable income by deducting ownership expenses for two vehicles that were neither leased nor encumbered. The Debtor filed a brief in response to eCast’s objection, in which he set forth multiple arguments as to why he should be allowed to claim the vehicle ownership expense deduction. The chapter 13 trustee disagreed; in his brief, he acknowledged that there was no controlling authority in this circuit, but argued that the applicable statutory scheme does not allow the Debtor to claim the ownership expenses.
The bankruptcy court held a hearing and took the matter under advisement. The court subsequently issued the Order, accompanied by a memorandum of decision in which it concluded that the Bankruptcy Code does not permit an above-median chapter 13 debtor to deduct a vehicle ownership expense that he is not incurring. The bankruptcy court examined the legislative intent behind BAPCPA and the language of § 1325(b)(3), which governs the determination of “reasonably necessary expenses” for debtors with income above the median for their jurisdiction. The court reasoned that, while the language of § 1325(b)(3) divulged no plain meaning, “[t]he determinative standard for Chapter 13 debtors’ expenses is reasonableness and necessity,” and that a “non-expenditure” such as the Debtor sought to apply did not qualify. Additionally, the court explained that it had rejected a vehicle’s declining worth as an ownership expense because chapter 13 budgeting had traditionally taken no account of such “costs” and “BAPCPA did not alter confirmation standards so fundamentally (and so adversely to creditors’ interests) that they must now be taken into account.” Accordingly, the court concluded that because the Debtor was not incurring out-of-pocket ownership expenses, they could not fairly be “projected” into his plan. This appeal *784 followed. 7
JURISDICTION
A bankruptcy appellate panel may hear appeals from “final judgments, orders and decrees [pursuant to 28 U.S.C. § 158(a)(1) ] or with leave of the court, from interlocutory orders and decrees [pursuant to 28 U.S.C. § 158(a)(3) ].”
Fleet Data Processing Corp. v. Branch (In re Bank of New England Corp.),
Here, the Panel ordered the Debtor to show cause why this appeal should not be dismissed as interlocutory because an order denying confirmation of a chapter 13 plan is not a final order (as the debtors are free to propose an alternative plan), and the Order did not appear to satisfy any of the exceptions to the final order rule. The Debtor filed a response in which he argued that the Order is a final, appealable order, or alternatively that the Order satisfies each of the three exceptions to the final order rule. The Panel determined that the Debtor had shown sufficient cause to preclude dismissal of the appeal, but did not make a final ruling on jurisdiction. We conclude that the Order is interlocutory,
see Hamilton v. Wells Fargo Bank, N.A. (In re Hamilton),
STANDARD OF REVIEW
The Panel generally reviews findings of fact for clear error and conclusions of law
de novo. See TI Fed. Credit Union v. DelBonis,
DISCUSSION
I. BAPCPA and Statutory Construction
Traditionally, questions of statutory construction begin with the plain language of the statute; courts consider the language in the context of the statutory scheme, avoiding statutory constructions which create results that are “senseless” or contrary to congressional intent.
See Hamilton v. Lanning (In re Lanning),
— U.S. —, -, - -,
It is generally accepted that many provisions of BAPCPA are unclear, making it difficult for courts to discern the congressional intent. See, e.g., Jean Braucher, A Guide to Interpretation of the 2005 Bankruptcy Law, 16 Am. Bankr. Inst. L. Rev. 349, 349 (Winter 2008); Hon. Thomas F. Waldron and Neil M. Berman, Principled Principles of Statutory Interpretation: A Judicial Perspective After Two Years of BAPCPA 81 Am. Bankr. L.J. 195, 197 (Summer 2007). Further complicating matters, different portions of BAPCPA are driven by different congressional goals, namely the sometimes competing goals of “Bankruptcy Abuse Prevention” and “Consumer Protection.” As such, the canons of statutory interpretation “do not necessarily compel consistent conclusions” with respect to different sections of BAPCPA. 10 Waldron & Berman, supra, at 199.
Thus, a provision of BAPCPA may be unclear even if it does not appear on its face to be ambiguous.
See id.;
Braucher,
supra,
at 349;
see also General Motors Corp. v. Darling’s Auto Mall,
The provision of BAPCPA at issue in this appeal is no exception; it has generated much conflicting ease law as well as discussion of differing theories of statutory construction.
11
See, e.g., id.; In re Young,
In our view, § 1325(b) is an example of a provision that is caught between the tension of BAPCPA’s two goals: bankruptcy abuse prevention and consumer protection. Thus, under different facts that implicated a different subsection of § 1325(b), this Panel concluded that the term “projected disposable income” is forward looking and that courts should adjust a below-median debtor’s “current monthly income” (with further adjustments not relevant here) when not consistent with the debtor’s actual circumstances.
Kibbe v. Sumski (In re Kibbe),
II. The Statute: Sections 1325(b) and 707(b)
The issue before us hinges on how to calculate the amounts that an above-median income chapter 13 debtor must pay unsecured creditors under BAPCPA. The calculation has two basic components: income and expenses. In the real world, one would intuitively subtract expenses from income to obtain that number. However, in bankruptcy after BAPCPA, the expense calculation for above-median income debtors is subject, with exceptions not here relevant, to a variety of nondiscretionary limitations.
Under § 1325(b)(1)(B), 12 if the trustee or an unsecured creditor objects to confir *787 mation of the plan, the bankruptcy court may not confirm the plan unless the plan “provides that all of the debtor’s projected disposable income to be received in the applicable commitment period beginning on the date that the first payment is due under the plan will be applied to make payments to unsecured creditors under the plan.” 13 11 U.S.C. § 1325(b)(1). The Code does not define “projected disposable income;” 14 however, “disposable in *788 come” means the debtor’s current monthly income minus “amounts reasonably necessary to be expended ... for the maintenance or support of the debtor or a dependent of the debtor” in addition to other items that do not apply in this instance. 11 U.S.C. § 1325(b)(2).
Section 707(b)(2)(A) and (B), the so-called “means test,” significantly restricts court discretion as to those expenses which are “amounts reasonably necessary” and accordingly can be deducted in calculating disposable income. 11 U.S.C. § 1325(b)(3); 11 U.S.C. § 707(b)(2);
In re Haley,
The National and Local Standards are “the Collection of Financial Standards used by the Internal Revenue Service to determine a taxpayer’s ability to pay a delinquent tax liability.”
In re Fowler,
The Local Standards provide fixed allowable expenses for (1) housing and utilities, and (2) transportation.
Id.; In re Haley,
The fact that Congress specified that debtors are entitled to “actual” monthly expenses with respect to Other Necessary Expenses and “applicable” monthly expense amounts with respect to the National and Local Standards indicates that Congress intended “applicable” to mean something other than “actual.”
In re Mati,
Legislative history indicates that Congress intended for the Local Standards to function as fixed deduction
*789
amounts.
In re Fowler,
(A) the expense allowances under the applicable National Standards, Local Standards, and Other Necessary Expenses allowance (excluding payments for debts) for the debtor ... in the area in which the debtor resides as determined under the Internal Revenue Service financial analysis for expenses in effect as of the date of the order for relief.
In re Fowler,
While the congressional wisdom of fixing the vehicle ownership expense deductions without regard to loan or lease is certainly subject to debate, there are sound reasons for that choice. Ownership expenses encompass costs associated with owning a vehicle beyond loan or lease payments; thus, even if the debtor does not need to replace the vehicle, owning a vehicle “always involves an expense.”
In re Kimbro,
CONCLUSION
Although
Lanning
can be read as an endorsement of judicial discretion,
see, e.g., In re Collier,
No. 09-33187,
For the reasons discussed above, we REVERSE the Order and REMAND for proceedings consistent with this opinion.
Notes
. The Debtor did not include a copy of the Order in his appendix, as required by Fed. R. Bankr.P. 8009(b)(3). Given that the Debtor did include the memorandum of decision, in which the bankruptcy court articulated the basis for its decision, the appellate record provides a sufficient basis for the Panel to review the Order.
See Gagne v. Fessenden (In re Gagne),
. Unless otherwise indicated, the terms "Bankruptcy Code,” "section” and "§ ” refer to Title 11 of the United States Code, 11 U.S.C. § 101, et seq., as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 37 ("BAPCPA”).
. Form B22C is the chapter 13 Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income.
. The term “current monthly income” is defined in § 101(10A); its various components are neither relevant nor in dispute. The Debtor’s annualized current monthly income for purposes of § 1325(b)(4) is $105,200.76. The applicable median family income in the District of Maine is $38,090.00.
. In its objection to confirmation, eCast refers to it as the amended Form B22C.
. We stayed the appeal pending the outcome of
Boyajian v. Burbank (In re Burbank),
Nos. 09-1776, 09-1777 (1st Cir. July 6, 2010), which the First Circuit took on direct appeal from the United States Bankruptcy Court for the District of Rhode Island. The First Circuit then stayed
Burbank
pending the Supreme Court’s decision in
Hamilton
v.
Lanning (In re
Lanning), - U.S. -,
. Application of § 158(a)(3) review of interlocutory orders mirrors application of § 1292(b).
Bank of New England,
. In
Marrama,
the Supreme Court began its opinion with a statement of the purpose of the Bankruptcy Code rather than the language of the statutory provision in question. There, the Court held that a debtor had forfeited his right to proceed under chapter 13 due to pre-petition bad faith conduct.
Marrama,
. For instance, courts sometimes interpret the word "and” to mean "or,”
see
Waldron & Berman,
supra,
at 200 (citing
In re TCR of Denver, LLC,
. For an excellent exposition of the line of reasoning adopted by many of the courts that have concluded a debtor may not claim the vehicle ownership deduction where there is no loan or lease payment on the vehicle,
see In re Ransom,
. Section 1325(b) provides in pertinent part as follows:
(b)(1) If the trustee or the holder of an allowed unsecured claim objects to the confirmation of the plan, then the court may not approve the plan unless, as of the effective date of the plan—
(A) the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim; or
(B) the plan provides that all of the debt- or’s projected disposable income to be received in the applicable commitment period beginning on the date that the first payment is due under the plan will be applied to make payments to unsecured creditors under the plan.
(2) For purposes of this subsection, the term "disposable income” means current monthly income received by the debtor *787 (other than child support payments, foster care payments, or disability payments for a dependent child made in accordance with applicable nonbankruptcy law to the extent reasonably necessary to be expended for such child) less amounts reasonably necessary to be expended—
(A)(i) for the maintenance or support of the debtor or a dependent of the debtor, or for a domestic support obligation, that first becomes payable after the date the petition is filed; and
(ii) for charitable contributions (that meet the definition of 'charitable contribution’ under section 548(d)(3)) to a qualified religious or charitable entity or organization (as defined in section 548(d)(4)) in an amount not to exceed 15 percent of gross income of the debtor for the year in which the contributions are made; and
(B) if the debtor is engaged in business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business.
(3) Amounts reasonably necessary to be expended under paragraph (2), other than subparagraph (A)(ii) of paragraph (2), shall be determined in accordance with subpara-graphs (A) and (B) of section 707(b)(2), if the debtor has current monthly income, when multiplied by 12, greater than—
(A) in the case of a debtor in a household of 1 person, the median family income of the applicable State for 1 earner;
(B) in the case of a debtor in a household of 2, 3, or 4 individuals, the highest median income of the applicable State for a family of the same number or fewer individuals; or
(C) in the case of a debtor in a household exceeding 4 individuals, the highest median family income of the applicable State for a family of 4 or fewer individuals, plus $575 per month for each individual in excess of 4.
. The court may also approve the plan if "the value of the property to be distributed under the plan on account of such claim is not less than the amount of such claim,” 11 U.S.C. § 1325(b)(1)(A), but this provision is not at issue here.
. Until recently, interpretation of the income side of projected disposable income was the subject of disagreement between two circuits.
See, e.g., Coop v. Frederickson (In re Frederickson),
. Section 707(b)(2)(A)(ii)(I) provides in pertinent part:
The debtor’s monthly expenses shall be the debtor's applicable monthly expense amounts specified under the National Standards and Local Standards, and the debt- or’s actual monthly expenses for the categories specified as Other Necessary Expenses issued by the Internal Revenue Service for the area in which the debtor resides, as in effect on the date of the order for relief, for the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case, if the spouse is not otherwise a dependent.
11 U.S.C. § 707(b)(2)(A)(ii)(I) (emphasis supplied).
. In this respect, the fact that the IRS does not allow taxpayers to claim an ownership expense for a vehicle on which the taxpayer is not actually making payments is irrelevant and not binding on bankruptcy courts.
See In re Mati,
. In
Collier,
the United States Bankruptcy Court for the Middle District of Alabama reasoned that, under
Lanning,
"the means test is the starting point, but [the] test may be varied under the circumstances of a particular case. It follows that a
per se
rule in which all payments to secured creditors are reasonable [sic] necessary deductions under Section 707(b) is not in keeping with the holding in
Lanning.” In re Collier,
. Although the Court emphasized that its decision was based on the text of § 1325, Judge Nancy Dreher has opined that the "real issue” in Lanning was not plain meaning, but rather the scope of judicial discretion under the Bankruptcy Code. See Dreher, supra. Judge Dreher noted that lower courts tend to "adherfe] religiously to a Ron Pair analysis” by narrowing judicial discretion in the face of ambiguous statutory language, while the circuit courts and the Supreme Court are sometimes "more generous in reading the statute to make sense rather than as totally strangling the bankruptcy court’s discretion.” Id.