Jason M. Ransom, Petitioner v. Fia Card Services, N.a., Fka Mbna America Bank, N.a. (562 U.S. 61)
U.S. Supreme Court · decided January 11, 2011 · Supreme Court Database (Spaeth)
- Citation
- 562 U.S. 61 · 131 S. Ct. 716
- Decided
- January 11, 2011
- Term
- October Term 2010
- Vote
- 8–1
- Majority author
- Justice Kagan
- Issue area
- Economic Activity
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Conservative
Opinion excerpt
Justice Kagan delivered the opinion of the Court. Chapter 13 of the Bankruptcy Code enables an individual to obtain a discharge of his debts if he pays his creditors a portion of his monthly income in accordance with a court-approved plan. 11 U. S. C. § 1301 et seq. To determine how much income the debtor is capable of paying, Chapter 13 uses a statutory formula known as the “means test.” §§ 707(b)(2) (2006 ed. and Supp. Ill), 1325(b)(3)(A) (2006 ed.). The means test instructs a debtor to deduct specified expenses from his current monthly income. The result is his “disposable income” — the amount he has available to reimburse creditors. § 1325(b)(2). This case concerns the specified expense for vehicle-ownership costs. We must determine whether a debtor like petitioner Jason Ransom who owns his car outright, and so does not make loan or lease payments, may claim an allowance for car-ownership costs (thereby reducing the amount he will repay creditors). We hold that the text, context, and purpose of the statutory provision at issue preclude this result. A debtor who does not make loan or lease payments may not take the car-ownership deduction. I A “Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA or Act) to correct perceived abuses of the bankruptcy system. ” Milavetz, Gallop & Milavetz, P. A. v. United States, 559 U. S. 229, 231-232…
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