Ninth Circuit Holds That Chapter 13 Plan Must Continue for 60 Months Even Though Debtor Has No Projected Disposable Income

Summary:  On August 19, 2013, the United States Court of Appeals for the Ninth Circuit, sitting en banc, in Danielson v. Flores (In re Flores), held that a Chapter 13 debtor whose current income is above the “median family income,” but with no “projected disposable income,” must still commit to plan payments for at least 60 months.  In so holding, the court stated that even though a debtor currently has no disposable income from which to make plan payments, the debtor must still commit to payments for 60 months in the event the debtor’s income unexpectedly increases during the plan period.

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