9th Circuit BAP Denies Right of Chapter 13 Debtors to Deduct $200 “Older Vehicle Operating Expense”

Drummond v. Luedtke (In re Luedtke), — B.R. — (9th Cir. BAP April, 2014)

Issue: May an above median chapter 13 debtor deduct $200 per month for “older vehicle operating expense” when computing their plan payment?

Holding: No.

“We believe that the plain meaning of the language in § 707(b)(2)(A)(ii)(I) controls the resolution of this issue.  The statutory text dictates that debtors’ monthly expenses under the means test ‘shall be the debtor’s applicable monthly expense amounts specified under the National Standards and Local Standards . . . issued by the Internal Revenue Service.’”

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