Thursday, August 29, 2013

8-29-13 - 9th Cir. En Banc, overrules the holding of Kagenveama - In re Flores

The 9th Circuit, sitting en banc, held that when a Chapter 13 debtor has no “projected disposable income,” 11 U.S.C. § 1325(b)(1)(B) permits plan confirmation only if the length of the proposed plan is at least equal to the applicable commitment period under § 1325(b)(4). The court overruled  the holding of Maney v. Kagenveama (In re Kagenveama), 541 F.3d 868 (9th Cir. 2008), that § 1325(b)(1)(B) does not impose a minimum duration for a Chapter 13 plan if the debtor has no projected income.

The Court also reaffirmed that 1325(b)(1)(B) acts as a temporal, as distinct from a monetary, requirement that defines a plan's duration.

In re Flores

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