Darrohn v. Hildebrand

615 F.3d 470 (2010)

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Darrohn v. Hildebrand

United States Court of Appeals for the Sixth Circuit
615 F.3d 470 (2010)

  • Written by Jody Stuart, JD

Facts

David and Marguerite Darrohn (debtors) filed for Chapter 13 bankruptcy. Because their income was greater than the applicable Tennessee median income, the Darrohns were above-median-income debtors. The Darrohns intended to surrender their residence, which was mortgaged, as part of their bankruptcy plan. Therefore, the Darrohns would no longer be required to pay the mortgage. In calculating their projected disposable income, the Darrohns deducted their mortgage payments from their current monthly income even though they intended to surrender the property. The bankruptcy trustee objected to the Darrohns’ proposed plan because the Darrohns would no longer have mortgage payments once they surrendered the property. The bankruptcy court determined that the Darrohns could deduct the mortgage payments and confirmed the proposed plan. The trustee appealed.

Rule of Law

Issue

Holding and Reasoning (McKeague, J.)

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