THE ECONOMIC DIMENSION Should debtors with older vehicles be allowed to take an additional deduction for operating
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Should debtors with older vehicles be allowed to take an additional deduction for operating expenses? Explain.
THE CULTURAL DIMENSION
What argument might be made in favor of allowing a debtor who lives outside an area with mass transit to claim a deduction in the “Ownership Costs” category for a car that he or she owns free and clear?
Ransom filed a petition in a federal bankruptcy court to declare bankruptcy under Chapter 13. Among his assets, Ransom reported a Toyota Camry that he owned free of any debt. In listing monthly expenses for the means test, he claimed a car- ownership deduction of $ 471 and a separate $ 388 deduction for car- operating costs. Based on his means- test calculations, Ransom proposed a five- year plan that would repay about 25 percent of his unsecured debt.
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Business Law Text and Cases
ISBN: 978-1285185248
13th edition
Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross
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