October Term 2010 · Docket 09-907
Can a debtor without a car loan deduct vehicle ownership costs?
Creditors argue a debtor without a car loan cannot deduct ownership costs. The debtor claims the standard deduction applies regardless of debt.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Maynard argued the Code precludes shielding car payments.
Ms. Saharsky argued the ownership cost is for loans.
Mr. Burke argued Congress created a fixed expense formula.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 19-21 — Transcript, file page 4, lines 19-21
- Official Supreme Court Transcript — file page 4, lines 25-31 — Transcript, file page 4, lines 25-31
- Official Supreme Court Transcript — file page 4, lines 41-45 — Transcript, file page 4, lines 41-45
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
- Official Supreme Court Transcript — file page 5, lines 19-23 — Transcript, file page 5, lines 19-23
- Official Supreme Court Transcript — file page 5, lines 29-35 — Transcript, file page 5, lines 29-35
- Official Supreme Court Transcript — file page 5, lines 41-43 — Transcript, file page 5, lines 41-43
- Official Supreme Court Transcript — file page 5, lines 47-5 — Transcript, file page 5, lines 47-5
- Official Supreme Court Transcript — file page 5, lines 7-11 — Transcript, file page 5, lines 7-11
- Official Supreme Court Transcript — file page 6, lines 27-37 — Transcript, file page 6, lines 27-37
- Official Supreme Court Transcript — file page 6, lines 43-3 — Transcript, file page 6, lines 43-3
- Official Supreme Court Transcript — file page 7, lines 13-21 — Transcript, file page 7, lines 13-21
- Official Supreme Court Transcript — file page 7, lines 27-37 — Transcript, file page 7, lines 27-37
A citizen's guide to the whole case
What this case is about
The dispute centers on bankruptcy expense deductions. One side seeks to limit deductions to actual debts. The other side seeks to apply standard deductions universally.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
How the case got here
The Supreme Court heard oral argument in this case on October 4, 2010.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
What each side wants
Creditors want to deny the ownership cost deduction.
The debtor wants to keep the ownership cost deduction.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
What each side says
Creditors argue the deduction covers only loan payments.
The debtor argues the standard deduction applies to all.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
What the justices asked
Justice Alito asked if Congress referenced local standards.
Justice Ginsburg asked if the chart says ownership costs.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 19-21 — Transcript, file page 4, lines 19-21
- Official Supreme Court Transcript — file page 4, lines 25-31 — Transcript, file page 4, lines 25-31
- Official Supreme Court Transcript — file page 4, lines 41-45 — Transcript, file page 4, lines 41-45
- Official Supreme Court Transcript — file page 5, lines 19-23 — Transcript, file page 5, lines 19-23
- Official Supreme Court Transcript — file page 5, lines 29-35 — Transcript, file page 5, lines 29-35
- Official Supreme Court Transcript — file page 5, lines 41-43 — Transcript, file page 5, lines 41-43
- Official Supreme Court Transcript — file page 5, lines 47-5 — Transcript, file page 5, lines 47-5
- Official Supreme Court Transcript — file page 5, lines 7-11 — Transcript, file page 5, lines 7-11
- Official Supreme Court Transcript — file page 6, lines 27-37 — Transcript, file page 6, lines 27-37
- Official Supreme Court Transcript — file page 6, lines 43-3 — Transcript, file page 6, lines 43-3
- Official Supreme Court Transcript — file page 7, lines 13-21 — Transcript, file page 7, lines 13-21
- Official Supreme Court Transcript — file page 7, lines 27-37 — Transcript, file page 7, lines 27-37
Why it matters
This case defines bankruptcy expense deductions. It determines how much debtors keep for cars. It affects creditor recovery rates in bankruptcy.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 19-21 — Transcript, file page 4, lines 19-21
- Official Supreme Court Transcript — file page 4, lines 25-31 — Transcript, file page 4, lines 25-31
- Official Supreme Court Transcript — file page 4, lines 41-45 — Transcript, file page 4, lines 41-45
- Official Supreme Court Transcript — file page 5, lines 19-23 — Transcript, file page 5, lines 19-23
- Official Supreme Court Transcript — file page 5, lines 29-35 — Transcript, file page 5, lines 29-35
- Official Supreme Court Transcript — file page 5, lines 41-43 — Transcript, file page 5, lines 41-43
- Official Supreme Court Transcript — file page 5, lines 47-5 — Transcript, file page 5, lines 47-5
- Official Supreme Court Transcript — file page 5, lines 7-11 — Transcript, file page 5, lines 7-11
- Official Supreme Court Transcript — file page 6, lines 27-37 — Transcript, file page 6, lines 27-37
- Official Supreme Court Transcript — file page 6, lines 43-3 — Transcript, file page 6, lines 43-3
- Official Supreme Court Transcript — file page 7, lines 13-21 — Transcript, file page 7, lines 13-21
- Official Supreme Court Transcript — file page 7, lines 27-37 — Transcript, file page 7, lines 27-37
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
- Official Supreme Court Transcript — file page 26, lines 21-31 — Transcript, file page 26, lines 21-31
- Official Supreme Court Transcript — file page 3, lines 19-17 — Transcript, file page 3, lines 19-17
- Official Supreme Court Transcript — file page 43, lines 23-49 — Transcript, file page 43, lines 23-49
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.