Robin Carnahan: “The purpose of the amendment that Senator Collins and I are offering is to make sure that extraordinary and unexpected…”

“The purpose of the amendment that Senator Collins and I are offering is to make sure that extraordinary and unexpected expenses related to home energy costs are taken into consideration in the means test. Under the bill, monthly utility expenses are calculated based on the Internal Revenue Service standards. But these standards are only updated once a year from data based on the previous 12 months. These standards do not take into account the potential for dramatic increases in home energy costs. The sharp rise in home energy costs this winter has put a tremendous strain on low- and middle-income Americans. People across Missouri and, indeed, across the country have experienced dramatic increases in their home energy costs. Therefore, I believe the potential for significant increases in home energy costs must be considered in the means test. Our amendment ensures that a debtor can include an additional allowance in his or her monthly expenses if the debtor can document a sharp rise in home energy costs. The bill already allows a debtor to include an additional allowance for food and clothing in excess of the IRS standard. The logic of this amendment is similar. It would allow bankruptcy judges to consider whether an additional allowance related to home energy costs is appropriate. But the amendment requires that an additional allowance is only permitted when it is reasonable and necessary, and when the debtor can provide documentation of the additional expenses.…”