Above-median-income Chapter 13 debtors cannot subtract from their current monthly income secured debt payments for collateral they intend to surrender when calculating their projected disposal income.
Chapter 13 debtor was not allowed to take a deduction on Means Test for "future payments on secured claims" for surrendered residence.
Chapter 13 debtors were allowed to take a vehicle ownership expense deduction for a vehicle they owned free and clear.
The court held that the use of negative equity financing by the parties in connection with the purchase of a new car and trade-in of an another vehicle did not destroy the purchase money nature of Nissan’s PMSI. The court found that there was a close nexus between the debtors’ acquisition of the new car and the entire secured obligation, which included the negative equity financing. Therefore, pursuant to the hanging paragraph contained in 11 U.S.C. § 1325(a), the debtors could not cram down the secured lender’s claim into a secured claim and an unsecured claim under 11 U.S.C. § 506.
The debtor purchased a vehicle within 910 days of filing her Chapter 13 petition. The financing for this purchase included funds loaned to pay taxes, administrative fees, service fees, gap insurance, a service contract and the negative equity on the debtor's trade-in vehicle. The Court held that the fact that the debtor's obligation to the creditor included these components did not deprive the creditor of its purchase money security interest in the collateral, and therefore that, pursuant to the hanging paragraph of 11 U.S.C. section 1325(a), the debtor could not cram down the creditor's interest.
Pursuant to the Wisconsin exemption statutes, debtor who lives part-time in rented apartment in Milwaukee and part-time in a mobile home she owns in Adams County can claim the homestead exemption for the Adams County property. She can do so in spite of the fact that all of the evidence presented at the evidentiary hearing on the matter indicated that the debtor considered the Milwaukee County apartment her legal residence. The Court found that the debtor "occupied" the Adams County residence for the purpose of the exemption, albeit on a part-time basis.
Contract between debtor-in-possession and creditor was not a true lease, but was a security interest as defined in Wis. Stat. section 401.201(37), and therefore the debtor was not required to pay the creditor according to the terms of the contract. Rather, it could make adequate protection payments sufficient to protect the creditor's interest in the collateral.
Debtors' discharge was denied based on § 727(a)(2) and (a)(4), when debtors failed to list personal property (Beanie Babies and Disney memorabilia) collected over many years and which debtors believed did not have value to anyone else. Court held that debtors should have listed property in general terms and given its value as unknown.