Jamey Lynne Robinette and Carl Junior Robinette

OCR transcription for search; preserved printed pages are authoritative

UN TED STATES BANKRUPTCY COURT
DI STRI Cr OF NEW MEXI CO

In re:
J AMEY LYNNE ROBI NETTE and
CARL JUN OR ROBINETTE, II,
Debtors. No. 7- 06- 10585 SA

MEMORANDUM OPT NON ON WAE'TE CAP OONSTRUCIT ON
SUPPLY’ S_ MOITON TO DISMSS CHAPIFR 7 CASE

This matter is before the Court on the Mtion to Dsmss
Chapter 7 Case filed by creditor Wiite Cap Construction Supply
(“White Cap”). White Cap argues that granting relief to the
Debtors under Chapter 7 would be an abuse of the provisions of
Chapter 7, so it seeks dismssal pursuant to 11 US.C. §
707(b) (2) (A) (presunption of abuse) and/or 11 US.C. § 707(b)(3)
(totality of circunstances). To resolve this case, the Court
mist determne the proper Form 22A deduction for taxes (line 25)
and for paynents on priority clains (line 44). If the
presunption of abuse arises, the Court mist determine whet her
Debtors have show special circunstances under 11 US.C. §
707(b)(2)(B) that rebut the presunption of abuse. If Debtors are
successful in rebutting the presunption, then the Court must
determne if the case should be dismssed under the totality of
the circunstances. This is a core proceeding. This Mnorandum
Opinion constitutes the Court’s findings of fact and concl usi ons
of law Bankruptcy Rule 7052.

Based on the discussion below the Court finds that the
presunption of abuse arises and is not rebutted by the Debtors.
White Cap’s Mtion is well taken and wll be granted.

INFORMATION

US. GoveRNiad s 06-10585-s7 Doc45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 1 of 19

1Debtors’ petition claims that the debts were primarily
business debts, and denied the allegation by White Cap that the
debts were primarily consumer. 	Debtors stipulated at trial that
the debts were primarily consumer. 	See also Stewart v. United
States Trustee (In re Stewart), 175 F.3d 796, 808 (10 th Cir.
1999)(defining “primarily” in the context of § 707(b) as meaning
consumer debt exceeding fifty percent of the total debt).
Page -2-
FACTS
1. 	Debtors filed a joint chapter 7 petition on April 17, 2006.
They filed the means test form, Official Form 22A, with the
petition.
2. 	Debtors debts are primarily consumer debts. 1
3. 	The parties stipulated at trial to the following numbers:
Line 	Description 	Amount
12 	Total Current Monthly Income 	10,801.95
21 	Local Standards 	12.73
27 	Other Necessary Expenses: life insurance 	35.58
29 	Other Necessary Expenses: education 	20.83
31 	Other Necessary Expenses: health care 	200.50
32 	Other Necessary Expenses: telecommunication 	122.74
34 	Health Insurance, Disability Insurance 	456.78
40 	Continued Charitable Contributions 	6.67
4. 	The parties disagreed on taxes (line 25) and payments on
priority claims (line 44). 	White Cap also disagrees that any of
the circumstances claimed by Debtors qualify as “special
circumstances” that would allow them to adjust their income to
reflect a one time bonus received during the 6 months before
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2The parties stipulated to admission of White Cap’s exhibits
1 to 32, and Debtors’ exhibits 33 and 34.
Page -3-
filing, or to take deductions for “transportation expenses for
child visits,” “student loan payment” or “non-mandatory
retirement.”
5. 	Exhibit 30 2, page 2, shows that the Debtors had an average
monthly withholding tax of $1,632.02 for the 6 months preceding
filing. 	Mr. Robinette testified that he did not expect a refund
for calendar year 2006, but that it would “break even.” 	No other
evidence on current tax liabilities was presented.
6. 	Debtors listed a federal income tax refund receivable of
$12,492.00 and a state income tax refund receivable of $3,470.00
on their Schedule B. 	Exhibit 3. 	Both were claimed exempt.
Exhibit 3, Schedule C. 	Mr. Robinette testified that they
received these refunds late in 2006 and used the money to live on
and pay child support. 	These large refunds were the result of a
$60,263 net operating loss from Mr. Robinette’s business, which
had since closed. 	Therefore, this operating loss will not recur.
See Exhibit 25.
7. 	Exhibit 29, pages 9 and 10, show that Mr. Robinette owed
Internal Revenue Service taxes of $7,439.61 (941 taxes for tax
period 12/31/2004) and $11,800.41 (941 taxes for tax period
9/30/2004) as of June 19, 2006. 	This total, $19,240.02, includes
interest at 7%, see id., page 5, from the filing date to June 19,
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Page -4-
2006. 	Therefore, the Court will subtract $209.36 from the IRS
tax liability to find that the amount due on the petition date
was $19,030.66.
8. 	Exhibit 33 shows that the Debtors owed CRS taxes to the
state of New Mexico of $33,895.47 principal only. 	The Debtors
did not provide the amount of interest or penalties.
9. 	Total priority claims are therefore $52,926.31.
10. 	Ms. Robinette received a one-time bonus of $6,600.00 when
she signed up to work at her current job. 	The Court finds that
she has no reasonable alternative to replace this income.
11. 	The Court finds that $233.33 for transportation expenses for
child visits is both reasonable and necessary. 	The Court also
finds that there is no reasonable alternative to avoid this
expense.
12. 	Similarly, the Court finds that $137.83 for educational loan
repayment is both reasonable and necessary. 	The Court also finds
that there is no reasonable alternative to avoid this expense
because student loans are nondischargeable.
13. 	In contrast, the Court finds that $180.00 for “non-mandatory
retirement” is not a necessary expense. 	There is also an
alternative – Debtors can simply stop the non-mandatory
deduction.
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3
“Current Monthly Income” is defined at 11 U.S.C. § 101(10A)
as:
(A) means the average monthly income from all sources
that the debtor receives (or in a joint case the debtor
and the debtor's spouse receive) without regard to
(continued...)
Page -5-
14. 	Debtors’ annualized current monthly income is $129,623.40,
which is above New Mexico’s median income for a family of two
($41,228.00).
15. 	Based on the above, the Court prepared a Form 22A that is
attached to this Memorandum as Exhibit A.
CONCLUSIONS OF LAW
OVERVIEW
White Cap seeks dismissal under 11 U.S.C. § 707(b), which
provides in part:
(b)(1) After notice and a hearing, the court, on its
own motion or on a motion by the United States trustee,
trustee (or bankruptcy administrator, if any), or any
party in interest, may dismiss a case filed by an
individual debtor under this chapter whose debts are
primarily consumer debts, or, with the debtor's
consent, convert such a case to a case under chapter 11
or 13 of this title, if it finds that the granting of
relief would be an abuse of the provisions of this
chapter. In making a determination whether to dismiss a
case under this section, the court may not take into
consideration whether a debtor has made, or continues
to make, charitable contributions (that meet the
definition of "charitable contribution" under section
548(d)(3)) to any qualified religious or charitable
entity or organization (as that term is defined in
section 548(d)(4)).
The Court must presume that abuse exists if Debtors’ Current
Monthly Income 3 is greater than the median family income of the
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3(...continued)
whether such income is taxable income, derived during
the 6-month period ending on–
(i) the last day of the calendar month immediately
preceding the date of the commencement of the case if
the debtor files the schedule of current income
required by section 521(a)(1)(B)(ii);
plus other amounts not relevant to this case.
Page -6-
applicable state for a family of the same or fewer individuals
and such income, reduced by amounts determined in §
707(b)(2)(A)(ii), (iii) and (iv), and multiplied by 60 is not
less than the lesser of (I) 25 percent of the debtors’
nonpriority unsecured claims or $6,000 (whichever is greater); or
(II) $10,000. 	11 U.S.C. § 707(b)(2)(A)(i) and (b)(7)(A).
Section 707(b)(2)(A)(ii) allows deductions in the amounts
established by the National Standards and Local Standards issued
by the Internal Revenue Service for the Debtors’ area. 	For
certain categories of expenses, Debtors are also allowed to
deduct the actual amount of certain other expenses specified as
“Other Necessary Expenses”. 	See id. 	Section 707(b)(2)(A)(iii)
and (iv) allows debtors to deduct the average monthly payment on
account of secured and priority unsecured debt respectively.
The calculations required by 11 U.S.C. 707(b)(2) are
referred to as “the means test.” 	If a debtor does not “pass” the
means test, there is a presumption of abuse. 	However, the debtor
may rebut that presumption by demonstrating “special
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Page -7-
circumstances” that justify additional expenses or an adjustment
of current monthly income for which there is no reasonable
alternative. 	11 U.S.C. § 707(b)(2)(B)(i). 	Even if debtor
“passes” the means test, the Court can consider dismissal under
11 U.S.C. § 707(b)(3).
DEBTORS’ DEDUCTIONS
Form 22A, line 25, allows a deduction for “the total average
monthly expense that you actually incur for all federal, state
and local taxes, other than real estate and sales taxes, such as
income taxes, self employment taxes, social security taxes, and
Medicare taxes.” 	The Court found no cases interpreting this
phrase in the chapter 7 context. 	However, there are numerous
cases that construe it for chapter 13 purposes. 	These cases
unanimously agree that 1) the amount withheld is not necessarily
the amount “incurred”, 2) computation of this number is difficult
because actual tax liability is not determined until the future,
3) debtors must make their best guess estimate of the number.
See In re Stimac, 366 B.R. 889, 893-94 (Bankr. E.D. Wisc. 2007)
(Establishing rough-cut rule that the deduction would be 1/12th
of prior tax return’s liability unless debtor shows a change in
circumstances.); In re Lawson, 361 B.R. 215, 223 (Bankr. D. Utah
2007)(Debtors must make their best efforts to estimate their
actually incurred tax expenses.); In re Balcerowski, 353 B.R.
581, 588 (Bankr. E.D. Wisc. 2006)(Court rules that it would leave
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Page -8-
it to the parties to determine how to make the best estimate of
actual tax expense.)
In the case before the Court, the only evidence of
actual tax liability was that, at the current withholding levels,
Debtors expected no refund. 	This was not challenged. 	In effect,
the parties have determined among themselves what the appropriate
figure is. 	Id. 	Therefore, the Court finds that the amount
incurred in this case is the amount actually withheld.
Therefore, Debtors line 25 tax deduction is $1,632.02.
The next item on which the parties disagreed was the
deduction for priority taxes. 	Findings 7 through 9 above found
that the priority debt was $52,926.31. 	White Cap argues that, if
the IRS and State of New Mexico had offset the tax refunds, the
priority debt would have been much smaller, entitling Debtors to
a smaller deduction on line 44. 	The Court finds that it should
not compute this offset. 	The fact is that on the petition date,
Debtors owed $52,926.31. 	Form 22A represents a snapshot of
financial condition on the petition date. 	The taxing authorities
did not offset when notified of the bankruptcy; they refunded the
money.
Turning now to Exhibit A to this Memorandum, it shows, in
summary:
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Page -9-
Line 	Description 	Amount
12 	Total Current Monthly Income 	10,801.95
33 	Total Expenses Allowed under IRS Standards 	-5,041.03
41 	Total Additional Expense Deductions 707(b) 	-463.45
46 	Total Deductions for Debt Payment 	-3,640.28
47 	Total of all Deductions allowed 	-9,144.76
50 	Monthly Disposable Income under § 707(b)(2) 	1,657.19
51 	60-month disposable income 	99,431.40
52 	Line 51 is more than $10,950, presumption
applies.
Because the presumption applies, the burden now shifts to the
Debtors to show that their special circumstances allow them to
seek chapter 7 relief.
SPECIAL CIRCUMSTANCES
If the presumption of abuse arises, the debtor may attempt
to rebut it under 11 U.S.C. § 707(b)(2)(B). 	That provision
states:
(i) In any proceeding brought under this subsection,
the presumption of abuse may only be rebutted by
demonstrating special circumstances, such as a serious
medical condition or a call or order to active duty in
the Armed Forces, to the extent such special
circumstances that justify additional expenses or
adjustments of current monthly income for which there
is no reasonable alternative.
Case 06-10585-s7 Doc 45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 9 of 19

4Section 707(b)(2)(B) has both substantive and procedural
requirements. 	In re Littman, 370 B.R. 820, 830 (Bankr. D. Idaho
2007). 	In this case, Debtors did not follow the procedural
requirements. 	However, as discussed below, even if they had
followed the procedures of § 707(b)(2)(B)(ii) and (iii), they
have failed to rebut the presumption of abuse. 	See also In re
Tamez, 2007 WL 2329805 at *6 (Bankr. W.D. Tex. 2007)(Discussing
procedural requirements and approaches courts have taken to
satisfy the documentation requirements.); Eisen v. Thompson (In
re Thompson), 370 B.R. 762, 773 (N.D. Ohio 2007).
Page -10-
(ii) 4 In order to establish special circumstances, the
debtor shall be required to itemize each additional
expense or adjustment of income and to provide--
(I) documentation for such expense or adjustment
to income; and
(II) a detailed explanation of the special
circumstances that make such expenses or
adjustment to income necessary and reasonable.
(iii) The debtor shall attest under oath to the
accuracy of any information provided to demonstrate
that additional expenses or adjustments to income are
required.
(iv) The presumption of abuse may only be rebutted if
the additional expenses or adjustments to income
referred to in clause (i) cause the product of the
debtor's current monthly income reduced by the amounts
determined under clauses (ii), (iii), and (iv) of
subparagraph (A) when multiplied by 60 to be less than
the lesser of--
(I) 25 percent of the debtor's nonpriority
unsecured claims, or $6,000, whichever is greater;
or
(II) $10,000.
The Court finds that the two examples of special circumstances
enumerated in the statute are not the only circumstances that
debtors may cite, nor even archetypal circumstances. 	See In re
Littman, 370 B.R. 820, 830-31 (Bankr. D. Idaho 2007)(“[T]he two
examples do not purport to be exclusive. 	Nor is there something
necessarily inherent in these two examples that will always be
Case 06-10585-s7 Doc 45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 10 of 19

Page -11-
present in a BAPCPA-acceptable ‘special circumstance.’”)(Footnote
omitted.) 	Nothing in the language of the statute requires that
the circumstance be an act outside of a debtor’s control. 	Id. at
831 and n. 29; In re Graham, 363 B.R. 844, 850 (Bankr. S.D. Ohio
2007); In re Tamez, 2007 WL 2329805 at *5 (Bankr. W.D. Tex.
2007). 	Nor must the special circumstance be unanticipated. 	In
re Armstrong, 2007 WL 1544591 at *3 (Bankr. N.D. Ohio 2007). 	The
Court should approach the issue of special circumstances on a
case-by-case basis. 	Littman, 370 B.R. at 831.
Ms. Robinette’s first special circumstance is her $6,600 job
bonus. 	As discussed above, factually the Court found that this
one-time bonus justified an adjustment of current monthly income
for which there is no reasonable alternative. 	See Tamez, 2007 WL
2329805 at *5 (finding job change a special circumstance); In re
Heath, 2007 WL 1982194 at *7 (Bankr. E.D. Mich. 2007)(finding
unemployment of debtor a special circumstance). 	Cf. In re
Ferando, Case No. BK-06-81855, slip op. at 2 (Bankr. D. Neb.,
filed March 1, 2007)(Simple fluctuations in income are not
special circumstances, but “[t]his is not a situation where
Debtor claims that there was a one-time large and unique
commission earned during the six-month period.”)
The next special circumstance is the travel for child
visitation. 	The Court above found that it was a reasonable and
necessary expense for which there was no alternative. 	It should
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Page -12-
be allowed as a deduction from disposable income. 	Compare
Armstrong, 2007 WL 1544591 at *4 (Having to maintain 2 separate
residences to preserve status as custodial parent counted as a
special circumstance.)
The next special circumstance claimed is for student loan
expenses. 	The Court agrees with the cases that have found these
expenses to be special circumstances, because there is no
reasonable alternative to making the payments. 	See In re Haman,
366 B.R. 307, 318 (Bankr. D. Del. 2007); In re Templeton, 365
B.R. 213, 216 (Bankr. W.D. Okla. 2007).
The final special circumstance claimed is the non-mandatory
retirement contribution. 	The Court does not find this to be
reasonable or necessary, and Debtors have an alternative to the
expense. 	Therefore, the Court finds that it is not a special
circumstance.
To rebut the presumption, Debtors must show that the
additional expenses and reduction in income, when added together
and multiplied by sixty and subtracted from $99,431.40 is less
than $10,000. 	See 11 U.S.C. § 707(b)(2)(B)(iv)(II). 	It is not.
Line 51 	99,431.40
Monthly reduction in income 	1,100.00
Child visitation 	233.33
Student loan payments 	137.83
Total reductions 	1471.16 	x 60 = 	-88,269.60
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5 A chapter 13 case would provide the Debtors with the
satisfaction of repaying part of their unsecured debt, and permit
them to pay off their considerable tax debt without interest or
penalties, see §1322(a)(2), something they cannot do in a chapter
7 case. 	See also United States v. Fowler (In re Fowler), 394
F.3d 1208, 1212 (9 th Cir. 2005)(In chapter 13, IRS cannot recover
interest on prepetition unsecured priority tax claims.)
Page -13-
60 month disposable income adjusted for special
circumstances
11,161.80
Therefore, the Debtors have not rebutted the presumption of
abuse. 	White Cap’s Motion is well taken and will be granted by
separate Order, but Debtors will be allowed a short time in which
to convert to Chapter 13 5 or 11.
Honorable James S. Starzynski
United States Bankruptcy Judge
copies to:
Daniel J Behles
226-A Cynthia Loop NW
Albuquerque, NM 87114-1100
David T Thuma
500 Marquette Ave NW Ste 650
Albuquerque, NM 87102-5309
Linda S. Bloom
Trustee
PO Box 218
Albuquerque, NM 87103-0218
United States Trustee
PO Box 608
Albuquerque, NM 87103-0608
Case 06-10585-s7 Doc 45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 13 of 19

Official Form 22A (Chapter 7} (04/07)
Inre ROBINETTE

According to the calculations required by this statement:
IM The presumption arises.

Debtor(s}
S CL] The presumption does not arise.
Case Number: Ob~| 8S (Check the box as directed in Parts I, HII, and VI of this statement.)

CHAPTER 7 STATEMENT OF CURRENT MONTHLY INCOME
AND MEANS-TEST CALCULATION

In addition to Schedule I[ and J, this staternent must be completed by every individual Chapter 7 debtor, whether or not filing jointly,
whose debts are primarily consumer debts. Joint debtors may complete one statement only.

"(Part I. EXCLUSION FOR’ DISABLED VETERANS:

If you are a disabled veteran described in the Veteran's Declaration in this Part I, (1) check the box at the beginning of the
Veteran’s Declaration, (2) check the box for “The presumption does not arise” at the top of this statement, and (3) complete
the verification in Part VIII. Do not complete any of the remaining parts of this statement.

LC Veteran's Declaration. By checking this box, [ declare under penalty of perjury that I am a disabled veteran (as de-
| fined in 38 U.S.C. § 3741(1)) whose indebtedness occurred primarily during a period in which I was on active duty (as de-
fined in 10 U.S.C. § 101(d}(1)} or while I was performing a homeland defense activity (as defined in 32 U.S.C. §901(1)).

Part II. CALCULATION OF MONTHLY INCOME FOR § 707(b)(7) EXCLUSION

Marital /filing status. Check the box that applies and complete the balance of this part of this statement as directed.
a. 0 Unmarried. Complete only Column A (“Debtor's Income”) for Lines 3-12.

b. CL) Married, not filing jointly, with declaration of separate households. By checking this box, debtor declares under pen-
alty of perjury: “My spouse and I are legally separated under applicable non-bankruptcy faw or my spouse and I are liv-

2 ing apart other than for the purpose of evading the requirements of § 707({b)(2){A) of the Bankruptcy Code.” Com-
plete only Column A (“Debtor’s Income”) for Lines 3-11.

c. OJ Married, not filing jointly, without the declaration of separate households set out in Line 2.b above. Complete beth
Column A (“Debtor's Income”) and Column B (Spouse's Income) for Lines 3-11.

d. (J Married, filing jointly. Complete both Column A (Debtor's Income”) and Column B (“Spouse's Income”} for

Lines 3-11.
All figures must reflect average monthly income received from all sources, derived during the Column A Column B
six calendar months prior to filing the bankruptcy case, ending on the last day of the month Debtor's Spouse's
before the filing. If the amount of monthly income varied during the six months, you must Income Income

divide the six-month total by six, and enter the result on the appropriate line.

3 | Gross wages, salary, tips, bonuses, overtime, commissions. $ 6527.39 gH atl ¥ $f

Income from the operation of a business, profession or farm. Subtract Line b from Line
a and enter the difference in the appropriate column(s) of Line 4. Do not enter a number less
than zero. Do not include any part of the business expenses entered Line b as a de-
duction in Part V.

4 a. Gross receipts $
b. Ordinary and necessary business expenses $
c. Business income Subtract Line b from Line a $ OC $ >
Rent and other real property income. Subtract Line b from Line a and enter the difference
in the appropriate column(s} of Line 5. Do not enter a number less than zere. Do not Include
any part of the operating expenses entered on Line b as a deduction in Part V.
5 a. Gross receipts $
b. Ordinary and necessary operating expenses $
c. Rent and other real property income Subtract Line b from Line a ae) c
Interest, dividends and royalties. oO $ ran)
Pension and retirement income. $ © ls o
Any amounts paid by another person or entity, on a regutar basis, for the household
8 | expenses of the debtor or the debtor’s dependents, including child or spousal sup-
port. Do not include amounts paid by the debtor's spouse If Column B is completed. $ © $ oO

DAK
EX 1@ast 06-fysesdro DMEM piaaopaer Orprad 16/92/07 13:45:17 Page 14 of 19

Official Form 22A (Chapter 7) (04/07) - Cont. 2

Unemployment compensation. Enter the amount in the appropriate column(s} of Line 9.
However, if you contend that unemployment compensation received by you or your spouse
was a benefit under the Social Security Act, do not list the amount of such compensation in
9 | Column A or B, but instead state the amount in the space below:
Unemployment compensation clalmed to
be a benefit under the Social Security Act | Debtor $ Spouse $ $ oO $ rr)
Income from all other sources. If necessary, list additional sources on a separate page.
Do not Include any benefits received under the Social Security Act or payments received as
a victim of a war crime, crime against humanity, or as a victim of international or domestic
10 terrorism. Specify source and amount.
a $
b. $
Total and ente Line 10
otal and enter on Line $ oO $ ©
Subtotal of Current Monthly Income for § 767(b)(7). Add Lines 3 thru 10 in
11 | Column A, and, if Column B is completed, add Lines 3 through 10 in Column B. Enter the 6597.31 q at4 .5¢
total(s}. $ $
_ | Total Current Monthly Income for § 707(b){7). If Column B has been completed,
12: | add Line 11, Column A to Line 11, Column 6, and enter the total. If Column B has not been $ jo Sol 4 S
completed, enter the amount from Line 11, Column A. J .
Part III. APPLICATION OF §:707(b)(7) EXCLUSION
13 | Annualized Current Monthly Income for § 707(b)(7). Multiply the amount from Line 12 by
the number 12 and enter the result. $1a%G23.Yo
Applicable median family income. Enter the median family income for the applicable state and
14 household size. (This information is available by family size at www.usdoj.gov/ust/ or from the clerk of
the bankruptcy court.)
a. Enter debtor’s state of residence: NS M b. Enter debtor’s household size: 2 $ tf | 22% .00
Application of Section 707(b)(7). Check the applicable box and proceed as directed.
C] The amount on Line 13 is less than or equal to the amount on Line 14, Check the box for "The pre-
ais sumption does not arise” at the top of page 1 of this statement, and complete Part VITI; do not complete Parts IV, V, Vi
or VII.
&¢ The amount on Line 13 is more than the amount on Line 14, Complete the remaining parts of this state-
ment.
Complete Parts IV, V, VI, and VII of this statement only if required. (See Line 15.)
Part-IV, CALCULATION OF CURRENT MONTHLY INCOME FOR § 707(b)(2)
16 {Enter the amount from Line 12. $ 1oZol.7s|
Marital adjustment. If you checked the box at Line 2.c, enter the amount of the income listed in Line
‘L? =| 11, Column B that was NOT paid on a regular basis for the household expenses of the debtor or the
debtor’s dependents. If you did not check box at Line 2.c, enter zero. $ ©
18 | Current monthly income for § 707(b)(2). Subtract Line £7 from Line 16 and enter the result. $1Lo8oil 45)
Part V.. CALCU ; TION: OF DEDUCTIONS ALLOWED UNDER § 707(b)(2)
Subpart A: Deductions under’ Standards of the Thternal Revenue Service (IRs)
| National Standards: food, clothing, household supplies, personal care, and miscella-
19 ‘| neous. Enter “Total” amount from IRS National Standards for Allowable Living Expenses for the applicable
. ‘| family size and income level. (This information is available at www.usdoj.gov/ust/ or from the clerk of the 12 ©.00
bankruptcy court.) $ Ol.
. {Local Standards: housing and utilities; non-mortgage expenses. Enter the amount of the
20A [IRS Housing and Utilities Standards; non-mortgage expenses for the applicable county and family slze.

(This information is available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court). $ 3 00.00

Case 06-10585-s7 Doc45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 15 of 19

Official Form 22A (Chapter 7) (04/07) — Cont.

Local Standards: housing and utilities; mortgage/rent expense. Enter, in Line a below, the
amount of the IRS Housing and Utilitles Standards; mortgage/rent expense for your county and family size
(this Information Is available at www.usdoj.qov/ust/ or from the clerk of the bankruptcy court}; enter on
Line b the total of the Average Monthly Payments for any debts secured by your home, as stated in Line 42;
subtract Line b from Line a and enter the result in Line 20B. Do not enter an amount less than zero.

20B || a. IRS Housing and Utilities Standards; mortgage/rental expense | & g az 00

b. Average Monthly Payment for any debts secured by your
home, if any, as stated in Line 42 $ o OTT 2%

C. Net mortgage/rental expense Subtract Line b from Line a.

- .| Lines 204 and 20B does not accurately compute the allowance to which you are entitled under the IRS

21 (| State the basis for your contention in the space below:

‘| Local Standards: housing and utilities; adjustment. if you contend that the process set out in

Housing and Utillties Standards, enter any additional arnount to which you contend you are entitled, and

$ 12.73

ing a vehicle and regardless of whether you use public transportation.

Check the number of vehicles for which you pay the operating expenses or for which the operating ex-
22 .| penses are included as a contribution to your household expenses in Line 8.

flo ()1 G2 or more.

‘| mation is available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court.)

Local Standards: transportation; vehicle operaticn/ public transportation expense. You
are entitled to an expense allowance in this category regardless of whether you pay the expenses of operat-

Enter the amount from IRS Transportation Standards, Operating Costs & Public Transportation Costs for the
applicable number of vehicles in the applicable Metropolitan Statistical Area or Census Region. (This infor-

$ 420.00

pense for more than two vehicles.}
O1 (12 or more.

and enter the result in Line 23, Do not enter an amount less than zero.

‘| Local Standards: transportation ownership/lease expense; Vehicle 1. Check the number
of vehicles for which you claim an ownership/lease expense. (You may not claim an ownership/lease ex-

Enter, in Line a below, the amount of the IRS Transportation Standards, Ownership Costs, First Car {avail-
able at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court}; enter in Line b the total of the Aver-
33 «| age Monthly Payments for any debts secured by Vehicle 1, as stated in Line 42; subtract Line b from Line a

a. IRS Transportation Standards, Ownership Costs, First Car $ ie -66
b. Average Monthly Payment for any debts secured by Vehicle 1,
as stated in Line 42 $ 3U6 ” iS
c. Net ownership/lease expense for Vehicle 1 Subtract Line b from Line a.

¢ (a¥-8S

| only if you checked the “2 or more” Box in Line 23.
Enter, in Line a below, the amount of the IRS Transportation Standards, Ownership Costs, Second Car

Line a and enter the result In Line 24. Do not enter an amount less than zero.

Local Standards: transportation ownership/lease expense; Vehicle 2. Complete this Line

(available at www.usdoj.gov/ust/ or from the clerk of the bankruptcy court}; enter in Line b the total of the
Average Monthly Payments for any debts secured by Vehicle 2, as stated in Line 42; subtract Line b from

24
a. IRS Transportation Standards, Ownership Costs, Second Car $ 332.00
b. Average Monthly Payment for any debts secured by Vehicle 2, G 32
as stated in Line 42 $ bo
G Net ownership/lease expense for Vehicle 2 Subtract Line b from Line a.

$ ACS.1k

‘|| Other Necessary Expenses: taxes. Enter the total average monthly expense that you actually incur
25: | for all federal, state and local taxes, other than real estate and sales taxes, such as income taxes, self em-
ployment taxes, social security taxes, and Medicare taxes. Do not include real estate or sales taxes.

1632.04

pzyroll deductions that are required for your employment, such as mandatory retirement contributions,
union dues, and uniform costs. Do not include discretionary amounts, such as non-mandatory
401(k) contributions.

26.

Other Necessary Expenses: mandatory payroll deductions. Enter the total average monthly

Case 06-10585-s7 Doc45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 16 of 19

Official Form 22A (Chapter 7) (04/07) — Cont.

2?

‘| Other Necessary Expenses: life insurance. Enter average monthly premiums that you actually

pay for term life insurance for yourself. Do not include premiums for insurance on your dependents,
for whole life or for any other form of insurance.

¢ 38.83

28

“| Other Necessary Expenses: court-ordered payments. Enter the total monthly amount that you

gre required to pay pursuant to court order, such as spousal or child support payments. Do not include
payments on past due support obiigations included in Line 44.

¢ 600.00

29

Other Necessary Expenses: education for employment or for a physically or mentally
challenged child. Enter the total monthly amount that you actually expend for education that is a con-
dition of employment and for education that is required for a physically or mentally challenged dependent
child for whom no public education providing similar services is available.

$ ao-83

30

Other Necessary Expenses: childcare. Enter the average monthly amount that you actually expend
on childcare—such as baby-sitting, day care, nursery and preschool. Do not include other educational
payments.

$ ©)

.| Other Necessary Expenses: health care. Enter the average monthly amount that you actually

expend on health care expenses that are not reimbursed by insurance or paid by @ health savings account.

¢ 200.50

32

_| Do not include payments for health Insurance or health savings accounts listed In LIne 34,

Other Necessary Expenses: telecommunication services. Enter the average monthly amount
that you actually pay for telecommunication services other than your basic home telephone service—such
as cell phones, pagers, call waiting, caller id, special long distance, or internet service—to the extent neces-
sary for your health and welfare or that of your dependents. Do not include any amount previously de-

_| ducted.

$ {3.2.74

33

Total Expenses Allowed under IRS Standards. Enter the total of Lines 19 through 32.

$Sotl.o3

“Subpart B Additior al Expense’ Deductions under §. 707(b)
“Note: Do ‘trot: Include: any ‘expenses. that you: have listed ‘ln Lines 19-32

34

Health Insurance, Disability Insurance, and Health Savings Account Expenses. List and
total the average monthly amounts that you actually pay for yourself, your spouse, or your dependents in

the following categories.
248.00

208.93
C Health Savings Account $ oO

Total: Add Lines a, b and c

a. Health Insurance 5

b. Disability Insurance $

$4YS6.718

35

Continued contributions to the care of household or family members. Enter the actual
monthly expenses that you will continue to pay for the reasonable and necessary care and support of an
elderly, chronically ill, or disabled member of your household or member of your immediate family who is

unable to pay for such expenses.

36

‘| Protection against family violence. Enter any average monthly expenses that you actually Incurred

to maintain the safety of your family under the Family Violence Prevention and Services Act or other appli-

1 cable federal law. The nature of these expenses is required to be kept confidential by the court.

37

‘/Home energy costs. Enter the average monthly amount, in excess of the allowance specified by IRS

-; Local Standards for Housing and Utilities, that you actually expend for home energy costs. You must pro-
-{ Vide your case trustee with documentation demonstrating that the additional amount claimed is
4 reasonable and necessary.

38

. Education expenses for dependent children less than 18. Enter the average monthly ex-

penses that you actually incur, not to exceed $137.50 per child, in providing elementary and secondary
education for your dependent children less than 18 years of age. You must provide your case trustee

‘| with documentation demonstrating that the amount claimed is reasonable and necessary and
_| not already accounted for in the IRS Standards.

39

Additional food and ciothing expense. Enter the average monthly amount by which your food and
clothing expenses exceed the combined allowances for food and apparel in the IRS National Standards, not
to exceed five percent of those combined allowances. (This information is available at www.usdoj.qov/ust/
or from the clerk of the bankruptcy court.) You must provide your case trustee with documentation
demonstrating that the additional amount claimed is reasonable and necessary.

$ oO

40

Continued charitable contributions. Enter the amount that you will continue to contribute in the
form of cash or financial instruments to a charitable organization as defined In 26 U.S.C. § 170{c}(1)-(2).

¢ 6.61

41

‘| Total Additional Expense Deductions under § 707(b). Enter the total of Lines 34 through 40

$463.45

Case 06-10585-s7 Doc45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 17 of 19

Official Form 22A (Chapter 7) (04/07) = Cont.

42

Future payments on secured claims. For each of your debts that is secured by an interest in prop-
erty that you own, jist the name of the creditor, Identify the property securing the debt, and state the Av-
erage Monthly Payment. The Average Monthly Payment is the total of alt amounts contractually due to
each Secured Creditor in the 60 months following the filing of the bankruptcy case, divided by 60. Mort-
gage debts should include payments of taxes and insurance required by the mortgage. If necessary, list
additional entries on a separate page.

Name of Creditor Property Securing the Debt
a. PER DEBYoRS’ FoRM $
b. $
£

60-month Average Payment

Total: Add Lines a, b and c.

s2 15817

43

Other payments on secured claims. If any of debts listed in Line 42 are secured by your primary
residence, a motor vehicle, or other property necessary for your support or the support of your depend-
ents, you may include in your deduction 1/60th of any amount (the “cure amount”) that you must pay the
creditor in addition to the payments listed in Line 42, in order to maintain possession of the property. The
cure amount would include any sums in default that must be paid in order to avoid repossession or fore-
closure, List and total any such amounts in the following chart. If necessary, list additional entries ona
separate page.

Name of Creditor

Property Securing the Debt 1/66th of the Cure Amount
. $

b. $
Cc. $

Total: Add Lines a, b and c

44

Payments on priority claims. Enter the total amount of all priority claims (including priority child
support and alimony claims), divided by 60.

$ S$8a-

45

Chapter 13 administrative expenses. If you are eligible to file a case under Chapter 13, complete
the following chart, multiply the amount in tine a by the amount in line b, and enter the resulting adminis-
trative expense.

a. Projected average monthly Chapter 13 plan payment. $

b. Current multiplier for your district as determined under sched~-
ules issued by the Executive Office for United States Trustees,
(This information is available at www.usdoj.gov/ust/ or from

the clerk of the bankruptcy court.) x

Cc. Average monthiy administrative expense of Chapter 13 case

Total: Multiply Lines a and b

$ o

46

$ 3640.28

Total Deductions for Debt Payment. Enter the total of Lines 42 through 45.
| rotal Deductions Allowed under § 707(b)(2)_

47

Total of all deductions allowed under § 707(b)(2). Enter the total of Lines 33, 41, and 46.

$ THHY-76

Part VI. DETERMINATION OF § 707(b)(2) PRESUMPTION

48

Enter the amount from Line 18 (Current monthly income for § 707(b)(2})

$1ORol.4 §]

49

Enter the amount from Line 47 (Total of all deductions allowed under § 707(b)(2))

$ TItY WG

50

Monthiy disposable income under § 707(b)(2)}. Subtract Line 49 from Line 48 and enter the
result

¢ 15149

51

60-month disposable Income under § 707{b}(2)}. Multiply the amount In Line 50 by the num-
ber 60 and enter the result.

$444 a Ho

Case 06-10585-s7 Doc45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 18 of 19

Official Form 224A (Chapter 7) (04/07) — Cont.

Initia! presumption determination. Check the applicable box and proceed as directed.

LJ The amount on Line 51 is less than $6,575 Check the box for “The presumption does not arise” at the top of
page 1 of this statement, and complete the verification in Part VIII. Do not complete the remainder of Part VI.

‘52° The amount set forth on Line 51 is more than $10,950. Check the box for “The presumption arises” at the
; top of page 1 of this statement, and complete the verification in Part VIII. You may also complete Part VII. Do not
complete the remainder of Part VI.
C] The amount on Line 51 is at least $6,575, but not more than $10,950. Complete the remainder of Part
VI (Lines 53 through 55}.
33. | Enter the amount of your total non-priority unsecured debt $
54 | Threshold debt payment amount. Multiply the amount in Line 53 by the number 0.25 and enter
the result. $
Secondary presumption determination, Check the applicable box and proceed as directed.
CJ The amount on Line 51 is less than the amount on Line 54. Check the box for “The presumption does not
55 arise” at the top of page 1 of this statement, and complete the verification in Part VIII.
(] The amount on Line 51 is equal to or greater than the amount on Line $4. Check the box for “The pre-
sumption arises” at the top of page 1 of this statement, and complete the verification in Part VII. You may also com-
plete Part VII.
Other Expenses. List and describe any monthly expenses, not otherwise stated In this form, that are required for the
health and welfare of you and your family and that you contend should be an additional deduction from your current
monthly income under § 707(b}(2){A)(ii) (1). If necessary, list additional sources on a separate page. All figures should re-
flect your average monthly expense for each item, Total the expenses.
56 Expense Description Monthly Amount
a $
b, $
c. $
Total: Add Lines a, band c_ $
I declare under penalty of perjury that the information provided in this statement is true and correct. (If this is a joint case,
both debtors must sign.)
a7 Date: Signature:
(Debtor)
Date: Signature:

(Joint Debtor, If any}

Case 06-10585-s7 Doc45 Filed 10/02/07 Entered 10/02/07 13:45:17 Page 19 of 19