Estate of Carol Andrews, Deceased, Robert Andrews, Special Administrator, and Robert Andrews - Page 10

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          equity by $164,155 to $185,845 to reflect the amount outstanding            
          on the first and second mortgages.  Respondent concluded that               
          petitioners had a total net realizable equity of $310,011.                  
               Respondent accepted petitioners’ reported gross monthly                
          income of $5,252 but made the following adjustments to their                
          monthly expenses:  (1) Reduced the housing and utilities expense            
          from $1,756 to $1,254 because petitioners failed to document that           
          they were entitled to an amount higher than the local guideline             
          amount; and (2) disallowed the other expenses of $458 because               
          petitioners failed to itemize expenses, but allowed the $460 of             
          “other secured debt” because Ms. Cochran believed that amount               
          represented the attorney’s fees being paid to Ms. Merriam’s law             
          firm.  Regarding the possible future increases in expenses                  
          outlined in petitioners’ letters, respondent determined that                
          these were “general projections from the taxpayers’                         
          representative and may never, in fact, be incurred” and thus did            
          not take them into account.                                                 
               After making adjustments to petitioners’ monthly expenses,             
          respondent determined that $70,065 was collectible from their               
          future income.8  Respondent concluded that petitioners had a                
          reasonable collection potential of $380,076.                                

               8  Respondent determined that petitioners had monthly                  
          disposable income of $865 and multiplied this by 81, the number             
          of months remaining on the collection statute.                              

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