Issue link: https://mbozikis.ufcontent.com/i/1422521
45 disposable income to be received during the length of the plan period must be applied to make payments to unsecured creditors under the plan. 11 U.S.C. § 1325(b)(1). For purposes of the foregoing provisions, "disposable income" is defined to mean current monthly income received by the debtor (with certain exceptions) 15 less the amounts reasonably necessary to be expended for the maintenance or support of the debtor or one of the debtor's dependents, charitable contributions to qualified institutions, and, to the extent the debtor is engaged in business, amounts for the payment of expenditures necessary for the continuation, preservation and operation of such business. 11 U.S.C. § 1325(b)(2). If the debtor's current monthly income exceeds the applicable State median income for his or her household size, then the "amounts reasonably necessary to be expended" under Section 1325(b)(2) must be determined in accordance with subparagraphs (A) and (B) of Section 707(b)(2) (see discussion above). 11 U.S.C. § 1325(b)(3). If the debtor's current monthly income is below the applicable State median income for his or her household size, the calculation of his or her expenses will largely be determined by the court's judgment of whether such expenses are reasonable. The Supreme Court has held that when determining projected disposable income for purposes of Section 1325(b)(1), a "court may account for changes in the debtor's income or expenses that are known or virtually certain at the time of confirmation," rather than just rely on a debtor's "current monthly income," which, pursuant to Section 101(10A)(A)(i) of the Bankruptcy Code, is an average of the debtor's monthly income during the six months prior to the petition date. See Hamilton v. Lanning, 560 U.S. 505, 524 (2010). 3. Insolvency Although, as discussed above, eligibility for relief under the Bankruptcy Code is limited by type of entity, except in Chapter 9, 15 These exceptions include child support payments, foster care payments or disability payments for a dependent child.