In re: Brooks

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 14-2856
Decision Date: 
April 23, 2015
Federal District: 
C.D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in finding that child support award for “above-median” debtor may generally be excluded in its entirety from disposable income calculation under section 1352(b)(2) of Bankruptcy Code so as to make such award unavailable to creditors in Chapter 13 bankruptcy proceeding. Ct. found that child support awards could be included in disposable income calculations only in rare case where such awards were so excessive so as to constitute abuse of bankruptcy system, and instant $400 per month child support award did not qualify as excessive award. In so holding, Ct. rejected Trustee’s arguments that: (1) categorical exclusion of child support award often results in double deduction from disposable income calculation because many expenses covered by child support are already factored into standardized living expense deductions permitted under section 1325; and (2) child support awards should only be excluded from disposable income calculation where debtor could show existence of additional specific documented expense that was reasonably necessary for support of minor children.