Spotlight Article
Bankruptcy Court's Interpretation of Disposable Income Has Unanticipated Effect on Unsecured Creditors
The Bankruptcy Court for the Eastern District of North Carolina recently handed down an important decision governed by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). Its ruling in In re Alexander has garnered nationwide attention and has led to a split in other regions of the country regarding the analysis of a debtor's calculation of "disposable income" under BAPCPA. The effect of this decision? Unsecured creditors will receive less or no payment at all in cases where they may have otherwise received a dividend. (entire article..)
