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Unsecured creditor objected to confirmation of joint debtors’ Chapter 13 plan on ground that bankruptcy court should look to Schedule I in calculating debtors’ “projected disposable income” under 11 U.S.C. § 1325 and arguing that debtors improperly deducted monthly secured debt payments on real property that they were surrendering on Form B22C. Held, debtors’ deduction of monthly secured debt payments on real property that they were surrendering was improper, but creditor did not provide sufficient evidence to cause bankruptcy court to deviate from Form B22C when calculating monthly income. This opinion is in accord with the decision of Chief Judge Keir in the case of In re Watson, 366 B.R. 523 (Bankr. D. Md. 2007), which held that only in rare instances will the bankruptcy court consider confirming Chapter 13 plans where the “projected disposable income” does not conform with the calculations on Form B22C. In Watson, Judge Keir held that disposable income as calculated on Form B22C is the presumptive “projected disposable income” for application of Section 1325(b)(1)(B). but “if the presumption is rebutted, a projected budget based upon the evidence, reflecting projected earnings and projected reasonable necessary expenses will govern the determination of ‘projected disposable income’ for purposes of confirmation of the plan.” In re Watson, 366 B.R. at 531.

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James F. Schneider