The Supreme Court held that in calculating a debtor's "projected disposable income," a bankruptcy court may allow an ownership cost deduction for vehicles only if the debtor is actually making payments on the vehicles.
Jason Ransom filed for chapter 13 bankruptcy relief. Among his assets, he noted a 2004 Toyota Camry he owns free and clear of any loans or other encumbrances. In his liabilities, he noted a total of $82,542.93 in general unsecured claims, including a claim held by MBNA America Bank in the amount of $32,896.73.