South Florida Bankruptcy Law Blog: Nonfiling Spouse's Sole ...
, 367 B.R. 732 (Bankr.D.Kansas April 23, 2007)(Nugent, C.J.) held that an above-median income Chapter 13 debtor was not entitled to deduct as future payments to be made on secured debts for which only his nondebtor wife was liable, but that these payments by the nonfiling wife were deductible as a "marital adjustment" as they were not in fact amounts paid on a regular basis for household expenses. The court also held that the nonfiling spouses non-household or non-necessary expenses were not deductible on line 59 (now 60), but were deductible as part of the "marital adjustment." At issue in this case was how the means test that is applicable to the above-median income chapter 13 debtor treats the income of a non-filing spouse. The line items in questions were line 19 of Form 22BC "marital adjustment", line 47 "future payments on secured claims", and line 59 (now line 60) "other expenses." The nonfiling spouse was solely liable for the debt in question which was secured by a vehicle and real property solely owned by the nonfiling spouse. The debtor claimed a line 19 marital adjustment for the withholdings from the nonfiling spouse's paycheck, on line 47 deducted the nonfiling spouse's future payments on her vehicle and real property secured debt, and on line 59 claimed additional deductions for the nonfiling spouse's recreation, personal expenses, unsecured loan repayments, and assistance to her daughter. The court noted that CMI includes "any amount paid by any entity other than the debtor..on a regular basis for the household expenses of the debtor or the debtor's dependents." 11 U.S.C. section 101(10A)(A)(B). The court stated that the portion of the spouse's income not dedicated to paying household expenses is deducted from CMI and that this is effectuated by the line 19 "marital adjustment".
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