In the case of Jason M. Ransom v. FIA Card Services, N.A., 2010, the U.S Supreme Court ruled that a debtor in Chapter 13 bankruptcy cannot take an ownership cost deduction for a vehicle he owns outright when calculating his disposable income to repay creditors. The court held that such deductions are only applicable if there is an outstanding loan or lease payment on the vehicle. This decision was based on interpreting provisions of Bankruptcy Code §707(b)(2)(A) and (B). Jason Ransom had tried to claim this deduction despite owning his car free and clear, arguing it was allowed under IRS standards used in bankruptcy proceedings. However, FIA Card Services objected as they were one of his unsecured creditors who would receive less money due to this claimed expense.

In the dissenting opinion for Jason M. Ransom v. FIA Card Services, N.A., Justice Scalia argued that the majority's interpretation of "applicable" in the Bankruptcy Code was incorrect and overly restrictive. He contended that a debtor should be allowed to claim an ownership expense deduction even if they do not make loan or lease payments on their vehicle, as long as they own it outright. According to him, this is because such expenses are applicable to all car owners regardless of whether they still owe money on their vehicles or not; these costs include maintenance, insurance and depreciation among others which are inevitable for any car owner. Therefore, he believed that denying such deductions would unfairly disadvantage debtors who have already paid off their cars compared with those who haven't.