Samuel A Mercanti and Annick E Mercanti

Section 1325(b) provides in pertinent part:1
(b)(1)If the trustee or the holder of an allowed unsecured claim objects to
the confirmation of the plan, then the court may not approve the plan
unless, as of the effective date of the plan – . . .
UNITED STATES BANKRUPTCY COURT
FOR THE
DISTRICT OF MASSACHUSETTS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In re
SAMUEL A. MERCANTI and 	Chapter 13
ANNICK E. MERCANTI, 	Case No. 08-13780-RS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
ORDER
Whereas, the Debtors filed a Chapter 13 petition on May 8, 2008; and
Whereas, on September 5, 2008, the Chapter 13 Trustee filed an Objection to
Confirmation of the Debtors’ Third Amended Chapter 13 Plan on the ground that their
Amended Statement of Current Monthly Income and Calculation of Commitment Period
and Disposable Income (Official Form 22C) reflected monthly disposable income under 11
U.S.C. § 1325(b) of $923.86, which when multiplied by 60 to account for their applicable
commitment period of 60 months as above-median income debtors, see 11 U.S.C. §
1325(b)(4), would result in $55,431.60 for payment of unsecured creditors, as opposed to
the sum of $3,773.33 which would provide the Debtors general unsecured creditors with
a 3.17% dividend; and1
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(B) the plan provides that all of the debtor’s projected
disposable income to be received in the applicable
commitment period beginning on the date that the first
payment is due under the plan will be applied to make
payments to unsecured creditors under the plan.
11 U.S.C. § 1325(b)(1)(B)(emphasis supplied).
The dramatic reduction in the Debtors’ monthly disposable income in Form 22C2
is the result of a $737.52 deduction for “Other payments on secured claims” which
appears on Line 48 of the form. The Debtors claimed this deduction for amounts
necessary to cure mortgage arrears. The Debtors had not claimed this deduction before.
2
Whereas, the Debtors filed a Response to the Trustee’s Objection, asserting that their
plan met the best efforts test, see 11 U.S.C. § 1325(b)(1) and (3); and
Whereas, the Court conducted a hearing on October 2, 2008 and afforded the
Debtors an opportunity to submit a brief by October 13, 2008; and
Whereas, on October 8, 2008, in lieu of a brief, the Debtors filed an Amended Form
22C, an Amended Schedule J-Current Expenditures of Individual Debtor(s), and a Fourth
Amended Chapter 13 Plan; and
Whereas, in Amended Form 22C, the Debtors reported monthly disposable income
of $260.09; and2
Whereas, the Debtors’ amended plan provides for a monthly plan payment of
$1,091.46 and 10.76% dividend to unsecured creditors,
Now, therefore, the Court overrules the Chapter 13 Trustee’s Objection to
Confirmation of the Debtors’ Third Amended Plan, without prejudice to the filing of an
Objection to the Debtors’ Fourth Amended Chapter 13 Plan. The Trustee’s Objection filed
on September 5, 2008 is moot in view of the Debtors’ substantial amendments to their plan
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3
and Chapter 13 Statement of Current Monthly Income.
By the Court,
Joan N. Feeney
United States Bankruptcy Judge
Dated: October 28, 2008
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