Bankruptcy
Chapter 13 Plan may only include Necessary Expenses
By Charles R. Harroun, Attorney at Law
Feb 29, 2004, 20:51

CHAPTER 13 PLAN MAY ONLY
INCLUDE NECESSARY EXPENSES

In the case of In re Vincent Rybicki, 138 B.R. 225 (1992), the debtor included in his Chapter 13 bankruptcy repayment plan a monthly payment of $140.00 for a camper. The bank- ruptcy trustee objected to such a payment since it was not a “reasonably necessary expense” for the maintenance or support of the debtor as required by the Bankruptcy Code.

The court upheld the trustee’s objection and noted that the funds could better be directed to repay a greater portion of unsecured debts.

One purpose of a Chapter 13 case is to allow a debtor to maintain a reasonable lifestyle while simultaneously insuring that the debtor makes a serious effort to fulfill his/her obligations to pre-petition creditors by eliminating unnecessary or unreasonable expenses. The court denied debtor’s request to retain and fund the camper.