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February 18, 2010

PROJECTED DISPOSABLE INCOME TEST

Filed under: Uncategorized — admin @ 3:41 pm

In re Slater, No. 08 B 72714, 2009 WL 1220270, at *2 (Bankr. N.D. 111. Apr. 30, 2009) (Barbosa) (Plan that would pay 100% of unsecured debt in less than 60 months satisfies § 1325(b)(l)(A); debtors need not commit
all projected disposable income to also satisfy § 1325(b)(l)(B). Plan proposed to pay “100% of the unsecured creditors’ claims” in 56 months. Trustee objected arguing that correct calculation of projected disposable
income would pay unsecured debt in 42 months. “[T]he plain language of section 1325(b)(l) requires compliance with either subsection (A) or (B), but it does not require that the debtor meets both subsections…. [AJccording to the plain language of § 1325(b)(l), when the debtor’s plan provides for payment of all unsecured claims in full during the term of the plan, the Chapter 13 trustee’s objection shall be
overruled. . . . Debtors’ amended plan provides for payment of all unsecured claims in full by the end of the plan period. Thus, according to the plain language of § 1325(b)(l), Debtors’ plan complies with subsection A of§1325(b)(l).”).

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