§ 707(b)(2)

In re Burton

A chapter 7 trustee filed a motion to dismiss pursuant to 11 U.S.C. § 707(b)(2) and (3). After finding that the presumption of abuse did not arise under section 707(b)(2), the remaining issue was whether, based on the totality of the circumstances, abuse arose meriting the dismissal of the debtor's case.
Ruling: 
Case dismissed due to debtor's payment of portion of disposable income into 401(k) plan.
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Consumer case opionion summary, case decided on December 13,2007, LexisNexis #0108-050

In re Lindstrom

The United States Trustee (UST) moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b) on the grounds that the filing constituted a substantial abuse of the provisions of chapter 7. The issue was whether, under 11 U.S.C. § 707(b)(2)(A)(iii)(I), the debtor could deduct, as an allowable expense, monthly payments on a car loan when the car was repossessed prior to the filing of the UST's motion to dismiss.
Ruling: 
Debtor could deduct payments on vehicle repossessed prior to petition date from disposable income calculation.
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Consumer case opionion summary, case decided on December 12,2007, LexisNexis #0308-016

In re Makres

The debtors filed for relief under chapter 7. The United States Trustee filed a motion to dismiss pursuant to 11 U.S.C. § 707(b)(2). The court issued findings of fact and conclusions of law.
Ruling: 
Presumption of abuse did not arise where debtor properly completed Form B22A means test.
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Consumer case opionion summary, case decided on December 07,2007, LexisNexis #0108-051

In re Burmeister

The debtors moved for confirmation of their proposed chapter 13 plan. The standing chapter 13 trustee objected, arguing that the debtors were not devoting all of their projected disposable income to the plan because their calculation of disposable income deducted mortgage payments that they had stopped making on a home that they intend to surrender. The trustee added that the amended plan therefore was not proposed in good faith.
Ruling: 
Debtors properly included "contractually due" mortgage payments on property intended for surrender in disposable income calculation.
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Consumer case opionion summary, case decided on November 16,2007, LexisNexis #1207-083

In re Perrotta

The debtor moved for confirmation of her proposed chapter 13 plan. The creditor which held a security interest in the debtor's vehicle filed an objection as well as a motion for relief from the automatic stay or for adequate protection. The creditor contended that the debtor improperly bifurcated its secured claim in contravention of the unnumbered, hanging paragraph following 11 U.S.C. § 1325(a)(9).
Ruling: 
Discovery by United States Trustee not necessary prior to filing motion to dismiss for presumption of abuse.
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Consumer case opionion summary, case decided on November 07,2007, LexisNexis #1207-050

DeHart v. Boyd (In re Boyd)

Movant chapter 13 trustee filed an objection to a plan filed by respondent debtors, alleging that the amounts claimed to educate their adult daughter and for their own recreation were over-reaching and should be disallowed under 11 U.S.C. § 707(b)(2)(A).
Ruling: 
Plan expenses for recreation and adult daughter's education disallowed.
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Consumer case opionion summary, case decided on November 06,2007, LexisNexis #0108-078

In re Canales

The U.S. Trustee filed a motion to dismiss a chapter 7 debtor's case pursuant to 11 U.S.C. § 707(b)(1).
Ruling: 
Debtor who owned vehicle free and clear was not entitled to transportation ownership deduction.
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Consumer case opionion summary, case decided on October 31,2007, LexisNexis #1107-082

In re Townsend

A debtor filed for relief under chapter 7. A United States Trustee filed a motion to dismiss the case, pursuant to 11 U.S.C. § 707(b)(2), claiming that the debtor did not pass the means test and that a presumption of abuse existed.
Ruling: 
Debtor could deduct amounts payable on mortgages secured by property intended for surrender.
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Consumer case opionion summary, case decided on October 30,2007, LexisNexis #1207-051

In re Brown

The United States trustee moved to dismiss the debtors'chapter 7 petition, pursuant to 11 U.S.C. § 707(b)(2), arguing that the presumption of abuse arose and that the debtors were not allowed to claim a vehicle ownership expense under the Local Standards issued by the IRS, where they presently had no actual vehicle payment for their paid-off vehicles.
Ruling: 
Debtors could not claim vehicle ownership expense for vehicle owned free and clear and resulting adjusted income required dismissal.
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Consumer case opionion summary, case decided on October 16,2007, LexisNexis #1107-051

In re Ly Chang

Before the court was the motion of the U.S. Trustee ("UST") to dismiss the bankruptcy case of debtor under 11 U.S.C. § 707(b)(1) as an abuse of the provisions of chapter 7.
Ruling: 
Debtor could deduct payments on debt secured b residence despite postpetition surrender.
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Consumer case opionion summary, case decided on October 16,2007, LexisNexis #1107-052

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