The U.S. Bankruptcy Court for the District of Colorado issued its opinion in In re Gentry on Monday, December 19, 2011.
11 U.S.C. §101(10A)(B)
This case presented the question of whether debtors must include unemployment compensation in their calculation of current monthly income (“CMI”) on Form 22C, and in their calculation of projected disposable income (“PDI”) in their Chapter 13 plan. Debtors argued that the unemployment compensation is a “benefit received under the Social Security Act” and thus excluded from the calculation of CMI by 11 U.S.C. § 101(10A)(B). In determining an issue of first impression in this district, the Court analyzed the relationship between the Social Security Act and unemployment compensation, and concluded that it is not a benefit received under the Social Security Act. As a result, the Court denied confirmation due to Debtors’ failure to include the income in the plan and required an amended Form 22C and plan.