On September 26, 2008 (the "Petition Date"), the Appellees filed for Chapter 13 protection with the United states bankruptcy court for the Eastern District of Michigan. See Baud v. Carroll, 415 B.R. 291, 293 (E.D.Mich.2009).
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Uribarri J, Oh MS, Carroll HJ. D-lactic acidosis. Mégarbane B, Brivet F, Guérin JM, Baud FJ. [Lactic acidosis and multi-organ failure secondary to anti-retroviral therapy in HIV-infected patients].
Baud v. Carroll, 2011 U.S. App. LEXIS 2182 (6th Cir. Mich. 2011). Where a Chapter 13 plan does not propose to pay unsecured creditors in full and an objection to confirmation is filed, a debtor with positive projected disposable income must propose a plan which extends for the applicable commitment period.
Today the Supreme Court denied certiorari in the case of Baud v.Carroll, which raised the issue of the appropriate applicable commitment period for an above-median income debtor with no "projected disposable income." The Sixth Circuit Court of Appeals held below that above-median income debtors with no projected disposable income must propose five year plans if the trustee or unsecured.
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Baud v. Carroll, No. 11-27 (U.S.)The U.S. Courts of Appeals agree that where an above-median-income debtor has positive disposable income, as calculated under section 1325(b)(2) of the Bankruptcy Code and the applicable form, the debtor’s Chapter 13 plan must run for five years. Galluzzi et al., ci.
Issue: Whether 11 U.S.C. § 1325(b)(1)(B) requires a Chapter 13 debtor to propose a plan with a duration at least as long as the applicable commitment period, even if the debtor has no projected.
No. 09-2164 Baud, et al v. Carroll Page 3 of the plan and that, even if 1325(b) does mandate a minimum plan length, there is an exception for debtors, like them, with negative projected disposable income.