In Re Thissen

MEMORANDUM DECISION REGARDING TRUSTEE’S OBJECTION TO CONFIRMATION OF CHAPTER 13 PLAN

The Trustee objects to confirmation of the Debtors’ chapter 13 plan (the “Plan”) on the grounds that the Debtors have miscalculated the amount of disposable income which must be paid to unsecured creditors (the “Objection”). There are no disputed issues of fact. This decision turns upon the statutory construction of 11 U.S.C. § 707 (b) (2) (A) (iii) (I), which allows the Debtors to deduct from their gross income payments “contractually due to secured creditors.” The fair market value of the Debtors’ residence is less than the amount owed to the holder of the first trust deed. The Debtors want to deduct from their gross monthly income the payments they had been making to the holders of two wholly unsecured junior trust deeds. For the reasons set forth below, the Objection will be sustained.

This memorandum contains findings of fact and conclusions of law required by Federal Rule of Bankruptcy Procedure 7052 and Federal Rule of Civil Procedure 52. The court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334 and 11 U.S.C. § 1325 and General Orders 182 and 330 of the U.S. District Court…