UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
COVINGTON DIVISION
IN
RE:
SCOTT WALKER
CASE NO. 04-22846
DEBTOR
MEMORANDUM
OPINION AND ORDER
This
matter is before the court upon consideration for confirmation of a chapter 13
plan filed by the debtor in this action.
The chapter 13 trustee has objected to confirmation of the plan
asserting that the plan does not allocate an appropriate amount of common
expenses of the household to the non-filing spouse.
Both parties have briefed the matter and the trustee, in response to
the debtor’s assertions, has filed a thorough and well-reasoned response,
Doc. #22, asserting that each of the parties to the marriage should pay the
proportion of reasonable expenses which their income represents.
The trustee calculates this to be 72% for the debtor and 28% for the
non-filing spouse. The trustee
then provides a thorough analysis of the reasonable expenses of the debtor to
reach a conclusion that the debtor has disposable income of $1,533.00 per
month, which, pursuant to 11 U.S.C. §1325 must be committed to the plan for a
period long enough to liquidate the debts of the debtor or 36 months,
whichever is shorter. In this
calculation, the trustee has excluded luxury items such as a vacation in
Hilton Head, South Carolina as being items which are not reasonably necessary
to the well being of the debtor and debtor’s dependents.
She has further allocated to the debtor those expenses which are solely
his, such as alimony and support.
The
court finds that the trustee’s arguments are persuasive and the allocation
which she has made represents conformity with the provisions of the Bankruptcy
Code where one spouse files a proceeding and the other spouse does not.
Consequently, the plan is under funded by approximately $11,988.00. Accordingly, the court will allow the debtor an opportunity
to amend the plan to conform with this Memorandum Opinion, failing which the
court will dismiss the case for failure to propose a plan in conformity with the
requirements of the Bankruptcy Code.
IT
IS THEREFORE ORDERED AS FOLLOWS:
1) That the trustee’s objections to the provisions
of the chapter 13 plan filed by the debtor be, and the same hereby are,
SUSTAINED; and
2) The debtor shall have fifteen (15) days from the
date of entry of this order within which to amend the plan to conform
substantially to the trustee’s objections or the court will enter an order
dismissing the case.
COPIES
TO:
Beverly M. Burden, Esq.
Michael L. Baker, Esq.
U.S. Trustee