Garcia
Garcia v. Dockery
Opinion
Lead Opinion
MEMORANDUM **
Rick C. Garcia (“Garcia”) appeals the bankruptcy court’s order denying confirmation of his bankruptcy reorganization plan pursuant to Chapter 13 of the Bankruptcy Code. Although Garcia’s actual disposable income on the date that he filed his Chapter 13 plan — calculated by subtracting his actual expenses from his actual income on bankruptcy filing Schedules I and J — was $504 per month, Garcia claims he is not required to pay anything to his unsecured creditors because his disposable income — calculated by the statutory definition found in 11 U.S.C. § 1325 (b)(2) — resulted in a negative number. Nevertheless, Garcia’s Chapter 13 plan proposed to pay unsecured creditors $504 per month for three years. The total amount Garcia’s Chapter 13 plan proposed to pay unsecured creditors was less than the total amount he owed them.
The Trustee objected that Garcia’s Chapter 13 plan failed either: (1) to propose to pay unsecured creditors all of Garcia’s actual disposable income, as calculated on the date Garcia filed his plan; or (2) to remain in effect for the entire five-year *551 “applicable commitment period” mandated by 11 U.S.C. § 1325 (b)(4).