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reasonable collection potential. Respondent included only the
80-percent quick sale value of the 1987 Honda Accord ($340)
instead of the 100-percent value petitioners reported ($425).
Instead of including the annuity payments in petitioners’ gross
monthly income, respondent treated the annuity as an asset with a
value of $156,931. Respondent also included “other assets” worth
$155,500, reflecting his determination that petitioners’ May 2001
second mortgage and February 2004 refinancing were dissipations
of assets. Respondent concluded that petitioners had net
realizable equity in their assets of $331,447.
Respondent accepted petitioners’ reported gross monthly
income, less the annuity payments. Respondent also accepted
petitioners’ reported tax, health care, and life insurance
expenses. However, respondent reduced petitioners’ food,
clothing, misc. expense to $868 and their housing and utilities
expense to $1,235, to reflect national and local standards.
Respondent also reduced their transportation expense to $1,149
and disallowed their “other secured debt” expense and their
“other” expenses.
After making adjustments to their monthly expenses,
respondent determined that petitioners had monthly disposable
income of $1,979 and that $94,992 was collectible from their
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Last modified: May 25, 2011