5th Circuit Rules That Changes in Debtor Income Should Be Addressed in Chapter 13 Bankruptcies

The 5th Circuit has determined how "projected disposable income" is to be calculated in Chapter 13 bankruptcies, an important ruling that could mean debtors pay more or less to their unsecured creditors in some instances. The case involves an issue of first impression in the 5th Circuit concerning a common problem in Chapter 13 bankruptcy proceedings: What happens when a debtor's level of disposable income changes during the 60-month payment plan period?