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CHAPTER PLAN CAN BE MODIFIED TO SURRENDER VEHICLE Debtors could modify their confirmed Chapter 13 plan to surrender one of the vehicles that they had originally proposed to retain. The debtors had suffered a decrease in income and could no longer afford to maintain two vehicles. Given this decrease in the debtors' income, the debtors would not be in "bad faith" in seeking such a modification. In re Rodriguez, 2010 WL 2594850 (Bkrtcy.M.D.Fla., Judge Paskay).
SUPREME COURT TO CONSIDER QUESTION OF CAR OWNERSHIP COST DEDUCTION The United States Supreme Court has granted certiorari in Ransom v. MBNA (Docket No. 09-907), 2010 WL 333672, and has agreed to address whether, in calculating the "projected disposable income" that an above-median-income Chapter 13 debtor must devote to the payment of unsecured creditors, in order for the court to confirm, over an unsecured creditor's objection, a plan that provides for less than 100% dividend on unsecured claims, a bankruptcy court may allow an ownership cost deduction for a vehicle even if the debtor is not actually making payments on the vehicle. In the case below, In re Ransom, 577 F.3d 1026 (C.A.9 2009), the Ninth Circuit Court of Appeals held that such a debtor was not entitled to a vehicle ownership expense deduction for a vehicle that he owned free and clear of liens.