Ransom

Does an above-median income debtor seeking bankruptcy relief under chapter 13 get to deduct from his projected disposable income (that otherwise would be available to unsecured creditors) a vehicle “ownership cost” for a vehicle he owns free and clear? Based upon our interpretation of the controlling statute, 11 U.S.C. § 707 (b)(2)(A)(ii)(I), our answer is “no.” Thus, we agree with the decision of our Bankruptcy Appellate Panel (“BAP”), see Ransom v. MBNA Am. Bank, N.A. (In re Ransom), 380 B.R. 799 (9th Cir. BAP 2007), and affirm the decision of the bankruptcy court.

I.

The facts in this case are undisputed and are taken from our BAP’s decision. The debtor, Jason Ransom, filed for chapter 13 bankruptcy relief. Among his assets, he scheduled a 2004 Toyota Camry he owns free and clear of any loans or other encumbrances. In his liabilities, he scheduled a total of $82,542.93 in general unsecured claims, including a claim held by MBNA America Bank (“MBNA”) in the amount of $32,896.73.

On his Statement of Current Monthly Income (“Form B22C”), Ransom reported a current monthly income of $4,248.56, and an annualized income of $50,982.72, which put him above the median income for his…