Ransom v MBNA America Bank N A A case about consumer rights
Ransom v. MBNA, America Bank, N.A.: A case about consumer rights
What’s at stake. Bankruptcy filings for people over the age of 50 have been increasing at a faster rate that for any other age group, with unaffordable medical expenses often cited as a cause, according to Where AARP stands. AARP believes that older people with unaffordable debt burdens must have sufficient disposable income to meet their basic living expenses. How the Court Ruled Chalk one up for creditors. On Jan. 11, the Court affirmed, by a vote of 8 to 1, the Ninth Circuit's decision that a debtor who owns a vehicle outright may not claim the car-ownership allowance under the Bankruptcy Code's "means test" (a formula that determines how much a debtor can pay his creditors each month). "A person who owns a car free and clear," said Justice Elena Kagan, writing for the majority in her first , "is not entitled to claim the ‘Ownership Costs' deduction, because that allowance is for the separate costs of a car loan or lease."
Justice Antonin Scalia filed a dissenting opinion. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
Ransom v MBNA America Bank N A A Case About Consumer Rights
How to calculate living expenses during bankruptcy
In Ransom v. MBNA, America Bank, N.A., the Court will decide whether debtors with “above-median” incomes (many are 50-plus) who budget living expenses under a bankruptcy plan are entitled to gasoline, maintenance and other costs associated with operating vehicles that they own free and clear.Related
Listen to the Court’s oral arguments for Ransom v. MBNA America Bank, N.A.What’s at stake. Bankruptcy filings for people over the age of 50 have been increasing at a faster rate that for any other age group, with unaffordable medical expenses often cited as a cause, according to Where AARP stands. AARP believes that older people with unaffordable debt burdens must have sufficient disposable income to meet their basic living expenses. How the Court Ruled Chalk one up for creditors. On Jan. 11, the Court affirmed, by a vote of 8 to 1, the Ninth Circuit's decision that a debtor who owns a vehicle outright may not claim the car-ownership allowance under the Bankruptcy Code's "means test" (a formula that determines how much a debtor can pay his creditors each month). "A person who owns a car free and clear," said Justice Elena Kagan, writing for the majority in her first , "is not entitled to claim the ‘Ownership Costs' deduction, because that allowance is for the separate costs of a car loan or lease."
Justice Antonin Scalia filed a dissenting opinion. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures