Louisiana

Nonpurchase Money Debt Service on a Car Isn’t a Deductible ‘Ownership’ Cost in ‘13’

Courts aren’t fully in agreement, but most hold that non-purchase money debt service on a car isn’t an ‘ownership cost’ deducted from current monthly income to arrive at disposable income in chapter 13.

‘13’ Plans Already in Default on March 27 May Be Extended Under the CARES Act

Judge Grabill finds nothing in Section 1329(d) to preclude extending the duration of a plan if payments were already in default when the CARES Act was enacted on March 27.

Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13

Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.

District Court Allows 401(k) Contributions in Chapter 13 Up to the IRS Limits

Lower courts split three ways on 401(k) contributions and the calculation of disposable income in chapter 13.

Failing to Purchase Health Insurance Won’t Result in a Priority Tax Claim

The exaction for failure to purchase health insurance under the ACA is a tax for constitutional purposes but not a tax under the Bankruptcy Code, New Orleans judge rules.