Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca8-08-06008/USCOURTS-ca8-08-06008-0/pdf.json

Parties Involved:
Joyce Bradley Babin
Appellant
Nancy J. Gargula
Amicus on Behalf of Appellant
Leonard Powell
Appellee
Margaret Powell
Appellee

Document Text:

United States Bankruptcy Appellate Panel

FOR THE EIGHTH CIRCUIT

 

No. 08-6008

 

In re: *

*

Leonard Powell and Margaret Powell, *

*

Debtors. *

*

Joyce Bradley Babin, *

Chapter 13 Trustee, * Appeal from the United States

* Bankruptcy Court for the

Trustee - Appellant, * Western District of Arkansas

*

v. *

*

Leonard Powell and Margaret Powell, *

*

Debtors - Appellees. *

*

Nancy J. Gargula, U.S. Trustee, *

*

Amicus on Behalf of Appellant *

*

Appellate Case: 08-6008 Page: 1 Date Filed: 09/02/2008 Entry ID: 3466372
2

 

No. 08-6009

 

In re: *

*

Cho Pun Davis, *

*

Debtor. *

*

Joyce Bradley Babin, *

Chapter 13 Trustee, * Appeal from the United States

* Bankruptcy Court for the

Trustee - Appellant, * Western District of Arkansas

*

v. *

*

Cho Pun Davis, *

*

Debtor - Appellee. *

*

Nancy J. Gargula, U.S. Trustee, *

*

Amicus on Behalf of Appellant *

 

Submitted: August 8, 2008

Filed: September 2, 2008

 

Before KRESSEL, Chief Judge, SCHERMER, and MCDONALD, Bankruptcy

Judges

SCHERMER, Bankruptcy Judge

Appellate Case: 08-6008 Page: 2 Date Filed: 09/02/2008 Entry ID: 3466372
3

The issue raised in these appeals concerns the calculation of a debtor’s

allowable expenses under Section 707(b)(2)(A)(ii)(I) of the Bankruptcy Code. The

specific question addressed is whether above-median income debtors may claim

transportation ownership expense deductions for vehicles owned free and clear of

liens. The Chapter 13 Trustee objected to the confirmation of plans proposed by

Debtors Leonard and Margaret Powell and Cho Pun Davis on the theory that the

debtors were not submitting all projected disposable income to the repayment of

creditors under their plans. The debtors had calculated disposable income by

deducting transportation ownership expenses for vehicles owned free and clear of

liens. The bankruptcy court overruled the objections and confirmed the debtors’

plans. In so doing, the bankruptcy court allowed the debtors deductions for

transportation ownership expenses for vehicles owned free and clear of liens in

calculating disposable income.

This Court has previously addressed this issue in Babin v. Wilson (In re

Wilson), 383 B.R. 729 (B.A.P. 8th Cir. 2008), wherein this Court concluded that

debtors who do not incur vehicle ownership expenses are not permitted to claim a

deduction for such expenses because such expenses are not allowable under

Section 707(b)(2)(A)(ii)(I) of the Bankruptcy Code. We are bound by the decision

of a prior panel of this Court. United States v. Betcher, ___ F.3d ___, 2008 WL

2796721, at *2 (8th Cir. Jul. 22, 2008); Passmore v. Astrue, 533 F.3d 658, 660 (8th Cir.

2008); Nelson v. Mickelson (In re Pfleghaar), 215 B.R. 394, 396 (B.A.P. 8th Cir.

1997); Luedtke v. Nationsbanc Mortgage Corp. (In re Luedtke), 215 B.R. 390, 391 (8th

Cir. BAP 1997). For the reasons set forth in Babin v. Wilson, we REVERSE the

orders confirming the debtors’ plans.

 

Appellate Case: 08-6008 Page: 3 Date Filed: 09/02/2008 Entry ID: 3466372