Roy and Antonette Barnes - Page 6

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               Cochran determined that petitioners’ net realizable equity             
          in each of their reported assets was the same as its reported               
          value, except she reduced the reported value of each vehicle by             
          20 percent.6  Cochran summarized petitioners’ assets and                    
          liabilities as follows:                                                     
          Fair     Quick                   Net                                        
          market   sale                 realizable                                    
          Assets              value    value   Encumbrance    equity                  
          Cash                           $3,528     --         --         3,528       
          Investments                     3,438     --         --         3,438       
          Cash value of life insurance   22,771     --         --        22,771       
          Vehicles:                                                                   
          1989 Pontiac LE                 225     180        --           180         
          1997 Chevrolet Scottsdale       500     400        --           400         
          1999 Buick LeSabre            3,860   3,080      7,236          -0-         
          2000 BMW motorcycle           3,500   2,800        –-         2,800         
          Home                           89,000     --         --        89,000       
          Other real property            17,500     --         –-        17,500       
          144,322   6,460      7,236      139,617                                     
               As to the reported expenses, Cochran accepted all of those             
          expenses except for the $500 “other expense” which petitioners              
          failed to substantiate as to either its source or amount.7                  
          Cochran determined that petitioners’ monthly excess income (i.e.,           
          monthly income less monthly expenses) was $501 ($4,707 - ($4,706            
          - $500)), that petitioners’ income potential for the next                   

               6 Cochran noted that the reported values of petitioners’               
          home and other real property were ascertained from their assessed           
          values and not from appraisals or current market prices, which              
          could be higher.  Cochran also was told by petitioners that they            
          had ascertained the value of each vehicle by using its trade-in             
          value and considering its condition to be “fair”.                           
               7 Cochran allowed petitioners’ medical expenses in full,               
          although she considered the amount to be greater than average.              
          Cochran noted that petitioners’ 2003 Federal income tax return              
          claimed a deduction for $8,641 of medical expenses that they paid           
          during that year.                                                           




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