The Supreme Court ruled against allowing individuals filing for Chapter 13 bankruptcy to receive a deduction on their cars if they already own the vehicle outright.  The court made their decision yesterday in a case involving a man named James Ransom.

Ransom argued that he should receive a $471 monthly exemption in his bankruptcy filing despite the fact that he was not making any lease or loan payments on his vehicle.  Justices involved in the case made their decision following the provision on disposable income that “the debtor’s monthly expenses shall be the debtor’s applicable monthly expense amounts”.  Although car ownership can be a deductible expense, because the monthly expense was no longer applicable to Ransom because he owned the vehicle outright, he is not eligible for the deduction.

If you or someone you know is considering filing for bankruptcy protection and has questions about eligibility for Chapter 13 bankruptcy, contact the Milwaukee bankruptcy attorneys of DeLadurantey Law Office, LLC at 414-377-0518 today.

The U.S. Department of Justice’s Trustee Program recently announced that they will be intensifying their efforts in reviewing Chapter 13 bankruptcies and foreclosure documents.  Chapter 13 bankruptcy is different from other types of bankruptcy in that it allows individuals to keep their house and extend the time limit for making mortgage payments.

While a chapter 13 bankruptcy filing is being reviewed, individuals are still responsible for making their mortgage payments.  In addition, mortgage servicers are required to file a claim that shows how much they are owed by borrowers.  These two requirements have resulted in several documentation errors by banks.  Trustee officials will be looking to make sure lenders aren’t inflating fees and are continuing to take action on foreclosures.

To discuss filing for Chapter 13 bankruptcy with an experienced bankruptcy attorney, contact the Milwaukee Chapter 13 bankruptcy lawyers of DeLadurantey Law Office, LLC at 414-377-0518 today.