Recently, the Supreme Court considered a case about the means test that bankruptcy filers are currently required to pass. The case of Ransom v. MNBA is interesting, because it look at whether a bankruptcy filer is eligible for a car ownership deduction when they own their car. This case considers the factors of car ownership under Chapter 7 bankruptcy.
Facts to Consider About Car Ownership and Bankruptcy
The lawyers for Jason Ransom want a car ownership deduction because he owns his car outright. The argument is that if a deduction is allowed for a person making a monthly payment on a car, then a deduction should also be allowed if a person outright owns their car. Even though a monthly payment is not necessary, repairs and maintenance are often needed– especially because it is common for the cars to be older, which means that they may require more repairs than a newer car.
If the court does not grant the deduction to Ransom, does it mean that bankruptcy filers with car loans are rewarded while bankruptcy filers without car loans are punished? Some people say that the car owners should be rewarded for the financially sound decision that was made to pay off the car instead of leveraging into more debt through a car payment.
Why This Case Matters
The outcome of Ransom v. MNBA is being watched by many people, because it could greatly influence future bankruptcy filings. If you are considering bankruptcy, talk with a Minneapolis bankruptcy lawyer to get the best information available about bankruptcy.
Working with a Minnesota bankruptcy lawyer can make it possible to minimize the headaches associated with filing bankruptcy. A professional has the experience needed to make the process easy, and they will take care of the paperwork and other necessary steps to help you have the best outcome possible.