In Re Cleary

357 B.R. 369 (2006)

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Nature Of The Case

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Facts

Kevin (P) filed chapter 13. His wife did not join in the petition. P has six children. P is employed as a driver for a nationwide parcel delivery service and has been for 21 years. His current net monthly take-home pay, after deduction for taxes, union dues, and a 401k contribution, is $ 4,522.00. Mrs. Cleary was not employed outside the home for 15 years of the marriage. She has been employed as a teacher's aide at a parochial school for the past 2 years. Her net take-home pay, after taxes and a small 401k contribution, is $918.50. An additional $813.00 is deducted from her paycheck for tuition for three of the couple's children who attend the school. Her actual take-home pay is $ 105.50. Their gross income is $86,283.60. The family spends $1, 513.00 for private school (elementary and secondary) tuition each month. Five of the six children attend private school. The sixth child would like to return to private school next year. Ps receive assistance from the private high school in the form of reduced tuition because of their income and family size. The plan provides for monthly payments of $450 for 60 months. Mrs. Cleary received a private Catholic school education as a child and teenager. She works outside the home only to fund the private school tuition for the children and otherwise would not do so. P testified that a Catholic church-based education is very important to him and his wife. The family has chosen to reduce expenditures in other categories in order to provide the funds for private school tuition. The reported expenses are well below reported averages and below that which the chapter 13 trustees in this district would deem objectionable in chapter 13 cases. The private school tuition expense of P's family is not accounted for in the National Standards, Local Standards, or Other Necessary Expenses referred to in § 707(b)(2)(A)(ii)(I).

Issues

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Holding & Decision

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Legal Analysis

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