In re Austin

Debtor in bankruptcy keeps backhoe not used for work


This case involved the conflict between the "means test" and the debtors' actual income and expense budget.

In this case the debtors wanted to keep a backhoe which they owed money on, but did not use for work. The trustee objected and felt that the backhoe should be surrendered, and the money budgeted for the backhoe payment should be distributed to other creditors.

The court held that the means test would determine the payment amount under the terms of the Chapter 13 plan and not the debtors' actual income and expenses, since the debtors were above the median income. The debtor now drives his backhoe around his yard, while his unsecured creditors received very little.

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Reference Info:Decision | Federal, 2nd Circuit, Vermont | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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